Yahoo Finance Should Value Investors Buy Constellium (CSTM) 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Constellium (CSTM) is a stock many investors are watching right now. CSTM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.38, which compares to its industry's average of 20.54. Over the past 52 weeks, CSTM's Forward P/E has been as high as 17.59 and as low as 8.20, with a median of 10.13.
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. CSTM has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.49.
Finally, investors will want to recognize that CSTM has a P/CF ratio of 6.88. 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 stock's P/CF looks attractive against its industry's average P/CF of 22.64. Over the past 52 weeks, CSTM's P/CF has been as high as 7.01 and as low as 3.24, with a median of 5.20.
These are only a few of the key metrics included in Constellium'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, CSTM looks like an impressive value stock at the moment.
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Constellium SE (CSTM) : Free Stock Analysis Report
