Here at Zacks, our focus is on the confirmed Zacks Rank system, which emphasizes earnings estimates and estimate revisions to search out nice shares. However, we’re all the time taking note of the most recent worth, development, and momentum traits to underscore robust picks.
Of those, maybe no inventory market development is extra in style than worth investing, which is a method that has confirmed to achieve success in all kinds of market environments. Worth buyers use tried-and-true metrics and basic evaluation to search out firms that they imagine are undervalued at their present share worth ranges.
Zacks has developed the progressive Fashion Scores system to spotlight shares with particular traits. For instance, worth buyers will likely be enthusiastic about shares with nice grades within the “Worth” class. When paired with a excessive Zacks Rank, “A” grades within the Worth class are among the many strongest worth shares available on the market at this time.
One firm to observe proper now could be Owens Corning (OC). OC is at present sporting a Zacks Rank of #2 (Purchase) and an A for Worth. The inventory is buying and selling with P/E ratio of 14.34 proper now. For comparability, its business sports activities a mean P/E of 19.90. OC’s Ahead P/E has been as excessive as 19.95 and as little as 7.92, with a median of 14.43, all throughout the previous yr.
Traders also needs to be aware that OC holds a PEG ratio of 1.02. This in style metric is much like the widely-known P/E ratio, with the distinction being that the PEG ratio additionally takes under consideration the corporate’s anticipated earnings development charge. OC’s PEG compares to its business’s common PEG of 1.73. OC’s PEG has been as excessive as 4.73 and as little as 0.83, with a median of 1.39, all throughout the previous yr.
Worth buyers additionally use the P/S ratio. The P/S ratio is is calculated as worth divided by gross sales. Some individuals choose this metric as a result of gross sales are more durable to control on an revenue assertion. This implies it could possibly be a more true efficiency indicator. OC has a P/S ratio of 1.45. This compares to its business’s common P/S of two.09.
Lastly, our mannequin additionally underscores that OC has a P/CF ratio of 9.63. This determine highlights an organization’s working money movement and can be utilized to search out companies which are undervalued when contemplating their spectacular money outlook. This inventory’s P/CF appears enticing in opposition to its business’s common P/CF of 16.63. Over the previous yr, OC’s P/CF has been as excessive as 9.69 and as little as 4.50, with a median of 8.37.
These figures are only a handful of the metrics worth buyers have a tendency to have a look at, however they assist present that Owens Corning is probably going being undervalued proper now. Contemplating this, in addition to the power of its earnings outlook, OC appears like a terrific worth inventory for the time being.
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.