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Is Centrus Energy (LEU) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 to watch right now is Centrus Energy (LEU - Free Report) . LEU is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. LEU has a P/S ratio of 1.61. This compares to its industry's average P/S of 2.39.

Finally, investors will want to recognize that LEU has a P/CF ratio of 8.27. 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. LEU's current P/CF looks attractive when compared to its industry's average P/CF of 18.04. LEU's P/CF has been as high as 21.70 and as low as 6.58, with a median of 9.32, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Centrus Energy is likely undervalued currently. And when considering the strength of its earnings outlook, LEU sticks out at as one of the market's strongest value stocks.


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