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Is Mr Cooper (COOP) a Great Value Stock 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Mr Cooper (COOP - Free Report) . COOP is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. COOP has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.75.

Finally, investors will want to recognize that COOP has a P/CF ratio of 1.87. 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 5.05. Within the past 12 months, COOP's P/CF has been as high as 4.02 and as low as -4.66, with a median of 1.05.

These are only a few of the key metrics included in Mr Cooper's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, COOP looks like an impressive value stock at the moment.


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