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Should Value Investors Buy Mr. Cooper Group (COOP) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

One company value investors might notice is Mr. Cooper Group (COOP - Free Report) . COOP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We should also highlight that COOP has a P/B ratio of 0.67. 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 stock's P/B looks solid versus its industry's average P/B of 0.69. Over the past year, COOP's P/B has been as high as 1.08 and as low as 0.65, with a median of 0.77.

Finally, our model also underscores that COOP has a P/CF ratio of 2.87. 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. This stock's P/CF looks attractive against its industry's average P/CF of 3. COOP's P/CF has been as high as 3.57 and as low as 1.75, with a median of 2.53, all within the past year.

These are only a few of the key metrics included in Mr. Cooper Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, COOP looks like an impressive value stock at the moment.


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