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Is Cedar Fair (FUN) Stock Undervalued 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Cedar Fair (FUN - Free Report) . FUN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.63, which compares to its industry's average of 17.74. FUN's Forward P/E has been as high as 16.21 and as low as 9.89, with a median of 11.68, all within the past year.

Finally, our model also underscores that FUN has a P/CF ratio of 7.12. 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 20.23. Within the past 12 months, FUN's P/CF has been as high as 7.12 and as low as 4.29, with a median of 5.21.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Cedar Fair is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FUN feels like a great value stock at the moment.


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