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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 Cars.com (CARS - Free Report) . CARS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.07, while its industry has an average P/E of 22.53. Over the past 52 weeks, CARS's Forward P/E has been as high as 32.48 and as low as 8.07, with a median of 21.77.
Another notable valuation metric for CARS is its P/B ratio of 2.45. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.67. Over the past 12 months, CARS's P/B has been as high as 2.91 and as low as 2.06, with a median of 2.52.
Finally, our model also underscores that CARS has a P/CF ratio of 5.59. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CARS's current P/CF looks attractive when compared to its industry's average P/CF of 13.81. Over the past year, CARS's P/CF has been as high as 6.87 and as low as 4.70, with a median of 5.78.
Value investors will likely look at more than just these metrics, but the above data helps show that Cars.com is likely undervalued currently. And when considering the strength of its earnings outlook, CARS sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Cars.com (CARS) 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 Cars.com (CARS - Free Report) . CARS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.07, while its industry has an average P/E of 22.53. Over the past 52 weeks, CARS's Forward P/E has been as high as 32.48 and as low as 8.07, with a median of 21.77.
Another notable valuation metric for CARS is its P/B ratio of 2.45. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.67. Over the past 12 months, CARS's P/B has been as high as 2.91 and as low as 2.06, with a median of 2.52.
Finally, our model also underscores that CARS has a P/CF ratio of 5.59. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CARS's current P/CF looks attractive when compared to its industry's average P/CF of 13.81. Over the past year, CARS's P/CF has been as high as 6.87 and as low as 4.70, with a median of 5.78.
Value investors will likely look at more than just these metrics, but the above data helps show that Cars.com is likely undervalued currently. And when considering the strength of its earnings outlook, CARS sticks out at as one of the market's strongest value stocks.