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Are Investors Undervaluing CF Industries (CF) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is CF Industries (CF - Free Report) . CF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
CF is also sporting a PEG ratio of 2.38. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CF's PEG compares to its industry's average PEG of 3.15. CF's PEG has been as high as 2.67 and as low as 1.66, with a median of 2.28, all within the past year.
Investors should also recognize that CF has a P/B ratio of 1.91. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.13. Within the past 52 weeks, CF's P/B has been as high as 2.03 and as low as 1.57, with a median of 1.80.
Finally, we should also recognize that CF has a P/CF ratio of 7.25. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 17.92. CF's P/CF has been as high as 7.95 and as low as 4.79, with a median of 6.78, all within the past year.
These are just a handful of the figures considered in CF Industries'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 CF is an impressive value stock right now.
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Are Investors Undervaluing CF Industries (CF) Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is CF Industries (CF - Free Report) . CF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
CF is also sporting a PEG ratio of 2.38. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CF's PEG compares to its industry's average PEG of 3.15. CF's PEG has been as high as 2.67 and as low as 1.66, with a median of 2.28, all within the past year.
Investors should also recognize that CF has a P/B ratio of 1.91. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.13. Within the past 52 weeks, CF's P/B has been as high as 2.03 and as low as 1.57, with a median of 1.80.
Finally, we should also recognize that CF has a P/CF ratio of 7.25. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 17.92. CF's P/CF has been as high as 7.95 and as low as 4.79, with a median of 6.78, all within the past year.
These are just a handful of the figures considered in CF Industries'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 CF is an impressive value stock right now.