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Should Value Investors Buy Sumitomo (SSUMY) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Sumitomo (SSUMY - Free Report) . SSUMY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors will also notice that SSUMY has a PEG ratio of 0.55. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SSUMY's PEG compares to its industry's average PEG of 1.64. SSUMY's PEG has been as high as 0.75 and as low as -1.12, with a median of 0.58, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SSUMY has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.33.
Finally, investors should note that SSUMY has a P/CF ratio of 13.49. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SSUMY's P/CF compares to its industry's average P/CF of 17.23. Over the past year, SSUMY's P/CF has been as high as 112.84 and as low as 10.86, with a median of 12.16.
These are just a handful of the figures considered in Sumitomo's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SSUMY is an impressive value stock right now.
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Should Value Investors Buy Sumitomo (SSUMY) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Sumitomo (SSUMY - Free Report) . SSUMY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors will also notice that SSUMY has a PEG ratio of 0.55. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SSUMY's PEG compares to its industry's average PEG of 1.64. SSUMY's PEG has been as high as 0.75 and as low as -1.12, with a median of 0.58, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SSUMY has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.33.
Finally, investors should note that SSUMY has a P/CF ratio of 13.49. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SSUMY's P/CF compares to its industry's average P/CF of 17.23. Over the past year, SSUMY's P/CF has been as high as 112.84 and as low as 10.86, with a median of 12.16.
These are just a handful of the figures considered in Sumitomo's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SSUMY is an impressive value stock right now.