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Should Value Investors Buy SunCoke Energy (SXC) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is SunCoke Energy (SXC). SXC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

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Another valuation metric that we should highlight is SXC's P/B ratio of 1.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.48. Within the past 52 weeks, SXC's P/B has been as high as 1.48 and as low as 0.90, with a median of 1.21.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SXC has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.93.

These are just a handful of the figures considered in SunCoke Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SXC is an impressive value stock right now.

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SunCoke Energy, Inc. (SXC) : Free Stock Analysis Report

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Zacks Investment Research