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Should Value Investors Buy Molson Coors (TAP) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Molson Coors (TAP - Free Report) is a stock many investors are watching right now. TAP is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.99, which compares to its industry's average of 18.67. TAP's Forward P/E has been as high as 15.57 and as low as 10.82, with a median of 12.40, all within the past year.

TAP is also sporting a PEG ratio of 2.17. 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. TAP's PEG compares to its industry's average PEG of 3.19. Within the past year, TAP's PEG has been as high as 4.01 and as low as 1.05, with a median of 1.75.

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. TAP has a P/S ratio of 0.97. This compares to its industry's average P/S of 1.78.

These are just a handful of the figures considered in Molson Coors's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TAP is an impressive value stock right now.


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