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Are Investors Undervaluing Clearwater Paper (CLW) Right Now?
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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Clearwater Paper (CLW - Free Report) . CLW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
We should also highlight that CLW has a P/B ratio of 1.01. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.72. CLW's P/B has been as high as 1.43 and as low as 0.82, with a median of 1.09, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CLW has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.43.
Finally, investors should note that CLW has a P/CF ratio of 3.48. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.51. Over the past 52 weeks, CLW's P/CF has been as high as 7.42 and as low as 3.48, with a median of 4.87.
Veritiv may be another strong Paper and Related Products stock to add to your shortlist. VRTV is a # 1 (Strong Buy) stock with a Value grade of A.
Shares of Veritiv are currently trading at a forward earnings multiple of 7.04 and a PEG ratio of 0.45 compared to its industry's P/E and PEG ratios of 7.63 and 0.84, respectively.
VRTV's Forward P/E has been as high as 12.71 and as low as 4.69, with a median of 7.63. During the same time period, its PEG ratio has been as high as 0.62, as low as 0.30, with a median of 0.49.
Furthermore, Veritiv holds a P/B ratio of 2.33 and its industry's price-to-book ratio is 2.72. VRTV's P/B has been as high as 3.52, as low as 1.99, with a median of 2.62 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Clearwater Paper and Veritiv are likely undervalued currently. And when considering the strength of its earnings outlook, CLW and VRTV sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Clearwater Paper (CLW) Right Now?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Clearwater Paper (CLW - Free Report) . CLW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
We should also highlight that CLW has a P/B ratio of 1.01. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.72. CLW's P/B has been as high as 1.43 and as low as 0.82, with a median of 1.09, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CLW has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.43.
Finally, investors should note that CLW has a P/CF ratio of 3.48. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.51. Over the past 52 weeks, CLW's P/CF has been as high as 7.42 and as low as 3.48, with a median of 4.87.
Veritiv may be another strong Paper and Related Products stock to add to your shortlist. VRTV is a # 1 (Strong Buy) stock with a Value grade of A.
Shares of Veritiv are currently trading at a forward earnings multiple of 7.04 and a PEG ratio of 0.45 compared to its industry's P/E and PEG ratios of 7.63 and 0.84, respectively.
VRTV's Forward P/E has been as high as 12.71 and as low as 4.69, with a median of 7.63. During the same time period, its PEG ratio has been as high as 0.62, as low as 0.30, with a median of 0.49.
Furthermore, Veritiv holds a P/B ratio of 2.33 and its industry's price-to-book ratio is 2.72. VRTV's P/B has been as high as 3.52, as low as 1.99, with a median of 2.62 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Clearwater Paper and Veritiv are likely undervalued currently. And when considering the strength of its earnings outlook, CLW and VRTV sticks out as one of the market's strongest value stocks.