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Are Investors Undervaluing Chemours (CC) Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Chemours (CC - Free Report) . CC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.90. This compares to its industry's average Forward P/E of 13.18. CC's Forward P/E has been as high as 9.01 and as low as 4.18, with a median of 6.72, all within the past year.
Investors will also notice that CC has a PEG ratio of 1.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CC's PEG compares to its industry's average PEG of 1.64. CC's PEG has been as high as 1.41 and as low as 0.31, with a median of 0.54, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CC has a P/S ratio of 0.67. This compares to its industry's average P/S of 0.72.
Finally, our model also underscores that CC has a P/CF ratio of 5.54. 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 stock's P/CF looks attractive against its industry's average P/CF of 6.42. Within the past 12 months, CC's P/CF has been as high as 6.89 and as low as 3.21, with a median of 4.88.
Another great Chemical - Diversified stock you could consider is Tronox (TROX - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Tronox is currently trading with a Forward P/E ratio of 8.03 while its PEG ratio sits at 0.91. Both of the company's metrics compare favorably to its industry's average P/E of 13.18 and average PEG ratio of 1.64.
Over the last 12 months, TROX's P/E has been as high as 10.68, as low as 3.12, with a median of 5.75, and its PEG ratio has been as high as 4.75, as low as 0.23, with a median of 0.73.
Tronox sports a P/B ratio of 0.88 as well; this compares to its industry's price-to-book ratio of 2.02. In the past 52 weeks, TROX's P/B has been as high as 1.46, as low as 0.74, with a median of 0.99.
Value investors will likely look at more than just these metrics, but the above data helps show that Chemours and Tronox are likely undervalued currently. And when considering the strength of its earnings outlook, CC and TROX sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Chemours (CC) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Chemours (CC - Free Report) . CC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.90. This compares to its industry's average Forward P/E of 13.18. CC's Forward P/E has been as high as 9.01 and as low as 4.18, with a median of 6.72, all within the past year.
Investors will also notice that CC has a PEG ratio of 1.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CC's PEG compares to its industry's average PEG of 1.64. CC's PEG has been as high as 1.41 and as low as 0.31, with a median of 0.54, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CC has a P/S ratio of 0.67. This compares to its industry's average P/S of 0.72.
Finally, our model also underscores that CC has a P/CF ratio of 5.54. 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 stock's P/CF looks attractive against its industry's average P/CF of 6.42. Within the past 12 months, CC's P/CF has been as high as 6.89 and as low as 3.21, with a median of 4.88.
Another great Chemical - Diversified stock you could consider is Tronox (TROX - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Tronox is currently trading with a Forward P/E ratio of 8.03 while its PEG ratio sits at 0.91. Both of the company's metrics compare favorably to its industry's average P/E of 13.18 and average PEG ratio of 1.64.
Over the last 12 months, TROX's P/E has been as high as 10.68, as low as 3.12, with a median of 5.75, and its PEG ratio has been as high as 4.75, as low as 0.23, with a median of 0.73.
Tronox sports a P/B ratio of 0.88 as well; this compares to its industry's price-to-book ratio of 2.02. In the past 52 weeks, TROX's P/B has been as high as 1.46, as low as 0.74, with a median of 0.99.
Value investors will likely look at more than just these metrics, but the above data helps show that Chemours and Tronox are likely undervalued currently. And when considering the strength of its earnings outlook, CC and TROX sticks out as one of the market's strongest value stocks.