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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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Sunoco (SUN - Free Report) . SUN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.39, while its industry has an average P/E of 11.68. Over the past 52 weeks, SUN's Forward P/E has been as high as 16.32 and as low as 7.15, with a median of 11.99.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SUN has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.53.
Finally, investors should note that SUN has a P/CF ratio of 6.74. 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 8.25. Over the past year, SUN's P/CF has been as high as 9.17 and as low as 5.35, with a median of 6.89.
Value investors will likely look at more than just these metrics, but the above data helps show that Sunoco is likely undervalued currently. And when considering the strength of its earnings outlook, SUN sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Sunoco (SUN) Stock?
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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Sunoco (SUN - Free Report) . SUN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.39, while its industry has an average P/E of 11.68. Over the past 52 weeks, SUN's Forward P/E has been as high as 16.32 and as low as 7.15, with a median of 11.99.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SUN has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.53.
Finally, investors should note that SUN has a P/CF ratio of 6.74. 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 8.25. Over the past year, SUN's P/CF has been as high as 9.17 and as low as 5.35, with a median of 6.89.
Value investors will likely look at more than just these metrics, but the above data helps show that Sunoco is likely undervalued currently. And when considering the strength of its earnings outlook, SUN sticks out at as one of the market's strongest value stocks.