Yahoo Finance Should Value Investors Buy Cinemark (CNK) Stock?
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.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Cinemark (CNK). CNK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.76, while its industry has an average P/E of 16.78. Over the last 12 months, CNK's Forward P/E has been as high as 20.11 and as low as 10.66, with a median of 15.48.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CNK has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.24.
Finally, investors will want to recognize that CNK has a P/CF ratio of 6.57. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CNK's P/CF compares to its industry's average P/CF of 12.38. Over the past 52 weeks, CNK's P/CF has been as high as 192.77 and as low as 4.31, with a median of 7.37.
These are only a few of the key metrics included in Cinemark'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, CNK looks like an impressive value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cinemark Holdings Inc (CNK) : Free Stock Analysis Report
