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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is CPB (CPF - Free Report) . CPF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.55, which compares to its industry's average of 9.62. Over the past year, CPF's Forward P/E has been as high as 10.49 and as low as 6.89, with a median of 9.11.
Another valuation metric that we should highlight is CPF's P/B ratio of 1.09. 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 attractive against its industry's average P/B of 1.12. CPF's P/B has been as high as 1.17 and as low as 0.85, with a median of 1.01, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. CPF has a P/S ratio of 1.63. This compares to its industry's average P/S of 1.76.
Finally, investors should note that CPF has a P/CF ratio of 8.41. 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. CPF's current P/CF looks attractive when compared to its industry's average P/CF of 8.53. CPF's P/CF has been as high as 8.82 and as low as 4.82, with a median of 6.45, all within the past year.
These are only a few of the key metrics included in CPB'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, CPF looks like an impressive value stock at the moment.
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Are Investors Undervaluing CPB (CPF) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is CPB (CPF - Free Report) . CPF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.55, which compares to its industry's average of 9.62. Over the past year, CPF's Forward P/E has been as high as 10.49 and as low as 6.89, with a median of 9.11.
Another valuation metric that we should highlight is CPF's P/B ratio of 1.09. 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 attractive against its industry's average P/B of 1.12. CPF's P/B has been as high as 1.17 and as low as 0.85, with a median of 1.01, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. CPF has a P/S ratio of 1.63. This compares to its industry's average P/S of 1.76.
Finally, investors should note that CPF has a P/CF ratio of 8.41. 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. CPF's current P/CF looks attractive when compared to its industry's average P/CF of 8.53. CPF's P/CF has been as high as 8.82 and as low as 4.82, with a median of 6.45, all within the past year.
These are only a few of the key metrics included in CPB'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, CPF looks like an impressive value stock at the moment.