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Are Investors Undervaluing Compania Cervecerias Unidas (CCU) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
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 stock to keep an eye on is Compania Cervecerias Unidas (CCU - Free Report) . CCU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.20, which compares to its industry's average of 20.04. Over the past 52 weeks, CCU's Forward P/E has been as high as 17.47 and as low as 10.22, with a median of 12.63.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CCU has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.65.
Finally, we should also recognize that CCU has a P/CF ratio of 24.18. 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. CCU's P/CF compares to its industry's average P/CF of 55.39. CCU's P/CF has been as high as 25.78 and as low as 8.45, with a median of 13.60, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Compania Cervecerias Unidas is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCU feels like a great value stock at the moment.
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Are Investors Undervaluing Compania Cervecerias Unidas (CCU) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
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 stock to keep an eye on is Compania Cervecerias Unidas (CCU - Free Report) . CCU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.20, which compares to its industry's average of 20.04. Over the past 52 weeks, CCU's Forward P/E has been as high as 17.47 and as low as 10.22, with a median of 12.63.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CCU has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.65.
Finally, we should also recognize that CCU has a P/CF ratio of 24.18. 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. CCU's P/CF compares to its industry's average P/CF of 55.39. CCU's P/CF has been as high as 25.78 and as low as 8.45, with a median of 13.60, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Compania Cervecerias Unidas is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCU feels like a great value stock at the moment.