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Should Value Investors Buy Silgan Holdings (SLGN) Stock?
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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.
One company to watch right now is Silgan Holdings (SLGN - Free Report) . SLGN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.20. This compares to its industry's average Forward P/E of 15.82. Over the past 52 weeks, SLGN's Forward P/E has been as high as 12.78 and as low as 10.51, with a median of 11.47.
SLGN is also sporting a PEG ratio of 2.24. 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. SLGN's industry has an average PEG of 3.16 right now. Within the past year, SLGN's PEG has been as high as 2.56 and as low as 2.10, with a median of 2.29.
Another valuation metric that we should highlight is SLGN's P/B ratio of 3.06. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. SLGN's current P/B looks attractive when compared to its industry's average P/B of 6.45. SLGN's P/B has been as high as 3.79 and as low as 2.85, with a median of 3.16, over the past year.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SLGN has a P/S ratio of 0.87. This compares to its industry's average P/S of 1.17.
Finally, our model also underscores that SLGN has a P/CF ratio of 7.92. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.76. Within the past 12 months, SLGN's P/CF has been as high as 8.72 and as low as 7.21, with a median of 7.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Silgan Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SLGN feels like a great value stock at the moment.
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Should Value Investors Buy Silgan Holdings (SLGN) 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.
One company to watch right now is Silgan Holdings (SLGN - Free Report) . SLGN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.20. This compares to its industry's average Forward P/E of 15.82. Over the past 52 weeks, SLGN's Forward P/E has been as high as 12.78 and as low as 10.51, with a median of 11.47.
SLGN is also sporting a PEG ratio of 2.24. 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. SLGN's industry has an average PEG of 3.16 right now. Within the past year, SLGN's PEG has been as high as 2.56 and as low as 2.10, with a median of 2.29.
Another valuation metric that we should highlight is SLGN's P/B ratio of 3.06. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. SLGN's current P/B looks attractive when compared to its industry's average P/B of 6.45. SLGN's P/B has been as high as 3.79 and as low as 2.85, with a median of 3.16, over the past year.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SLGN has a P/S ratio of 0.87. This compares to its industry's average P/S of 1.17.
Finally, our model also underscores that SLGN has a P/CF ratio of 7.92. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.76. Within the past 12 months, SLGN's P/CF has been as high as 8.72 and as low as 7.21, with a median of 7.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Silgan Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SLGN feels like a great value stock at the moment.