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Is Chemours (CC) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Chemours (CC - Free Report) . CC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.69 right now. For comparison, its industry sports an average P/E of 13.24. CC's Forward P/E has been as high as 12.18 and as low as 8.45, with a median of 10.47, all within the past year.

Investors will also notice that CC has a PEG ratio of 0.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CC's PEG compares to its industry's average PEG of 0.67. Within the past year, CC's PEG has been as high as 0.45 and as low as 0.35, with a median of 0.40.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CC has a P/S ratio of 1.1. This compares to its industry's average P/S of 1.13.

Finally, investors will want to recognize that CC has a P/CF ratio of 10.49. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CC's P/CF compares to its industry's average P/CF of 11.03. Over the past year, CC's P/CF has been as high as 22.03 and as low as 7.22, with a median of 11.36.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Chemours is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CC feels like a great value stock at the moment.


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