Yahoo Finance Is CPB (CPF) a Great Value Stock 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 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 company value investors might notice is CPB (CPF). CPF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.72. This compares to its industry's average Forward P/E of 9.73. CPF's Forward P/E has been as high as 10.49 and as low as 6.38, with a median of 8.66, all within the past year.
Investors should also recognize that CPF has a P/B ratio of 1.07. 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. CPF's current P/B looks attractive when compared to its industry's average P/B of 1.14. Over the past 12 months, CPF's P/B has been as high as 1.17 and as low as 0.79, with a median of 1.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CPF has a P/S ratio of 1.67. This compares to its industry's average P/S of 1.7.
Finally, investors should note that CPF has a P/CF ratio of 7.79. 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. CPF's P/CF compares to its industry's average P/CF of 8.73. CPF's P/CF has been as high as 7.80 and as low as 4.47, with a median of 6.20, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that CPB is likely undervalued currently. And when considering the strength of its earnings outlook, CPF sticks out at as one of the market's strongest value stocks.
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CPB Inc. (CPF) : Free Stock Analysis Report
