Yahoo Finance Are Investors Undervaluing Coca-Cola HBC (CCHGY) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Coca-Cola HBC (CCHGY). CCHGY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.34. This compares to its industry's average Forward P/E of 20.97. Over the last 12 months, CCHGY's Forward P/E has been as high as 17.63 and as low as 11.68, with a median of 13.34.
Another valuation metric that we should highlight is CCHGY's P/B ratio of 3.50. The P/B ratio is used to compare a stock's market value with 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 8.84. Within the past 52 weeks, CCHGY's P/B has been as high as 3.55 and as low as 2.78, with a median of 3.19.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Coca-Cola HBC is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCHGY feels like a great value stock at the moment.
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Coca-Cola HBC (CCHGY) : Free Stock Analysis Report
