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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.
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.
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.
Cabot (CBT - Free Report) is a stock many investors are watching right now. CBT 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 13.64, which compares to its industry's average of 15.54. Over the last 12 months, CBT's Forward P/E has been as high as 14.37 and as low as 10.32, with a median of 12.14.
CBT is also sporting a PEG ratio of 0.92. 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. CBT's PEG compares to its industry's average PEG of 1.09. Within the past year, CBT's PEG has been as high as 2.66 and as low as 0.79, with a median of 2.11.
Finally, we should also recognize that CBT has a P/CF ratio of 9.40. 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 stock's P/CF looks attractive against its industry's average P/CF of 11.10. Within the past 12 months, CBT's P/CF has been as high as 9.54 and as low as 6.25, with a median of 8.38.
Value investors will likely look at more than just these metrics, but the above data helps show that Cabot is likely undervalued currently. And when considering the strength of its earnings outlook, CBT sticks out at as one of the market's strongest value stocks.
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Is Cabot (CBT) a Great Value Stock Right Now?
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.
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.
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.
Cabot (CBT - Free Report) is a stock many investors are watching right now. CBT 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 13.64, which compares to its industry's average of 15.54. Over the last 12 months, CBT's Forward P/E has been as high as 14.37 and as low as 10.32, with a median of 12.14.
CBT is also sporting a PEG ratio of 0.92. 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. CBT's PEG compares to its industry's average PEG of 1.09. Within the past year, CBT's PEG has been as high as 2.66 and as low as 0.79, with a median of 2.11.
Finally, we should also recognize that CBT has a P/CF ratio of 9.40. 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 stock's P/CF looks attractive against its industry's average P/CF of 11.10. Within the past 12 months, CBT's P/CF has been as high as 9.54 and as low as 6.25, with a median of 8.38.
Value investors will likely look at more than just these metrics, but the above data helps show that Cabot is likely undervalued currently. And when considering the strength of its earnings outlook, CBT sticks out at as one of the market's strongest value stocks.