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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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 Cabot (CBT - Free Report) . CBT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.94, while its industry has an average P/E of 15.39. Over the past 52 weeks, CBT's Forward P/E has been as high as 14.37 and as low as 10.32, with a median of 12.52.
Investors should also note that CBT holds a PEG ratio of 0.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CBT's PEG compares to its industry's average PEG of 1.06. Over the last 12 months, CBT's PEG has been as high as 2.66 and as low as 0.79, with a median of 0.95.
Finally, investors should note that CBT has a P/CF ratio of 8.92. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CBT's current P/CF looks attractive when compared to its industry's average P/CF of 10.50. CBT's P/CF has been as high as 9.54 and as low as 6.25, with a median of 8.33, all within the past year.
These are just a handful of the figures considered in Cabot's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CBT is an impressive value stock right now.
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Are Investors Undervaluing Cabot (CBT) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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 Cabot (CBT - Free Report) . CBT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.94, while its industry has an average P/E of 15.39. Over the past 52 weeks, CBT's Forward P/E has been as high as 14.37 and as low as 10.32, with a median of 12.52.
Investors should also note that CBT holds a PEG ratio of 0.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CBT's PEG compares to its industry's average PEG of 1.06. Over the last 12 months, CBT's PEG has been as high as 2.66 and as low as 0.79, with a median of 0.95.
Finally, investors should note that CBT has a P/CF ratio of 8.92. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CBT's current P/CF looks attractive when compared to its industry's average P/CF of 10.50. CBT's P/CF has been as high as 9.54 and as low as 6.25, with a median of 8.33, all within the past year.
These are just a handful of the figures considered in Cabot's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CBT is an impressive value stock right now.