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Is Constellium (CSTM) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Constellium (CSTM - Free Report) . CSTM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

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. CSTM has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.37.

Finally, our model also underscores that CSTM has a P/CF ratio of 2.56. 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. CSTM's P/CF compares to its industry's average P/CF of 7.34. Over the past year, CSTM's P/CF has been as high as 7.59 and as low as 2.32, with a median of 4.38.

Another great Metal Products - Distribution stock you could consider is Mitsui & Co. (MITSY - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Shares of Mitsui & Co. currently holds a Forward P/E ratio of 4.83, and its PEG ratio is 0.26. In comparison, its industry sports average P/E and PEG ratios of 5.81 and 0.67.

MITSY's Forward P/E has been as high as 7.42 and as low as 4.77, with a median of 6.20. During the same time period, its PEG ratio has been as high as 0.32, as low as 0.17, with a median of 0.27.

Mitsui & Co. sports a P/B ratio of 0.70 as well; this compares to its industry's price-to-book ratio of 1.83. In the past 52 weeks, MITSY's P/B has been as high as 0.99, as low as 0.69, with a median of 0.82.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Constellium and Mitsui & Co. are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CSTM and MITSY feels like a great value stock at the moment.


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