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Should Value Investors Buy Consol Energy (CEIX) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Consol Energy (CEIX - Free Report) is a stock many investors are watching right now. CEIX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 2.60, while its industry has an average P/E of 4.17. Over the past year, CEIX's Forward P/E has been as high as 7.72 and as low as 2.25, with a median of 3.25.

Finally, our model also underscores that CEIX has a P/CF ratio of 4.16. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.87. Over the past 52 weeks, CEIX's P/CF has been as high as 8.60 and as low as 2.74, with a median of 5.08.

These are just a handful of the figures considered in Consol Energy'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 CEIX is an impressive value stock right now.


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