Yahoo Finance Should Value Investors Buy Molson Coors (TAP) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Molson Coors (TAP) is a stock many investors are watching right now. TAP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.81. This compares to its industry's average Forward P/E of 17.45. TAP's Forward P/E has been as high as 15.57 and as low as 10.82, with a median of 11.81, all within the past year.
Investors should also note that TAP holds a PEG ratio of 2.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TAP's PEG compares to its industry's average PEG of 2.94. Over the last 12 months, TAP's PEG has been as high as 4.01 and as low as 1.05, with a median of 1.75.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TAP has a P/S ratio of 1.03. This compares to its industry's average P/S of 1.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Molson Coors is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TAP feels like a great value stock at the moment.
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Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
