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.
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 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.
Consumer Portfolio Services is a stock many investors are watching right now. CPSS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.29, which compares to its industry's average of 10.10. Over the last 12 months, CPSS's Forward P/E has been as high as 6.81 and as low as 4.25, with a median of 5.94.
Finally, investors should note that CPSS has a P/CF ratio of 3.86. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.44. Over the past 52 weeks, CPSS's P/CF has been as high as 8.26 and as low as 2.70, with a median of 6.76.
These are just a handful of the figures considered in Consumer Portfolio Services'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 CPSS is an impressive value stock right now.
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Are Investors Undervaluing Consumer Portfolio Services (CPSS) 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.
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 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.
Consumer Portfolio Services is a stock many investors are watching right now. CPSS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.29, which compares to its industry's average of 10.10. Over the last 12 months, CPSS's Forward P/E has been as high as 6.81 and as low as 4.25, with a median of 5.94.
Finally, investors should note that CPSS has a P/CF ratio of 3.86. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.44. Over the past 52 weeks, CPSS's P/CF has been as high as 8.26 and as low as 2.70, with a median of 6.76.
These are just a handful of the figures considered in Consumer Portfolio Services'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 CPSS is an impressive value stock right now.