Yahoo Finance Should Value Investors Buy Itochu (ITOCY) 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Itochu (ITOCY). ITOCY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11 right now. For comparison, its industry sports an average P/E of 18.29. ITOCY's Forward P/E has been as high as 24.17 and as low as 10.63, with a median of 20.96, all within the past year.
Finally, investors will want to recognize that ITOCY has a P/CF ratio of 7.67. 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. ITOCY's P/CF compares to its industry's average P/CF of 22.32. ITOCY's P/CF has been as high as 8.12 and as low as 5.18, with a median of 6.65, all within the past year.
These are only a few of the key metrics included in Itochu'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, ITOCY looks like an impressive value stock at the moment.
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Itochu Corp. (ITOCY) : Free Stock Analysis Report
