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Are Investors Undervaluing Commercial Metals (CMC) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 Commercial Metals (CMC - Free Report) . CMC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is CMC's P/B ratio of 1.54. 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 1.56. Within the past 52 weeks, CMC's P/B has been as high as 1.68 and as low as 1.14, with a median of 1.47.
Finally, investors will want to recognize that CMC has a P/CF ratio of 7.09. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.51. Over the past 52 weeks, CMC's P/CF has been as high as 7.42 and as low as 4.32, with a median of 5.71.
These are only a few of the key metrics included in Commercial Metals'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, CMC looks like an impressive value stock at the moment.
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Are Investors Undervaluing Commercial Metals (CMC) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 Commercial Metals (CMC - Free Report) . CMC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is CMC's P/B ratio of 1.54. 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 1.56. Within the past 52 weeks, CMC's P/B has been as high as 1.68 and as low as 1.14, with a median of 1.47.
Finally, investors will want to recognize that CMC has a P/CF ratio of 7.09. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.51. Over the past 52 weeks, CMC's P/CF has been as high as 7.42 and as low as 4.32, with a median of 5.71.
These are only a few of the key metrics included in Commercial Metals'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, CMC looks like an impressive value stock at the moment.