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Are Investors Undervaluing Sumitomo (SSUMY) Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Sumitomo (SSUMY - Free Report) . SSUMY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.51 right now. For comparison, its industry sports an average P/E of 16.99. Over the last 12 months, SSUMY's Forward P/E has been as high as 9.51 and as low as 6.41, with a median of 8.02.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. SSUMY has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.
Finally, we should also recognize that SSUMY has a P/CF ratio of 7.29. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SSUMY's current P/CF looks attractive when compared to its industry's average P/CF of 25.59. Over the past year, SSUMY's P/CF has been as high as 7.36 and as low as 4.15, with a median of 6.18.
These are just a handful of the figures considered in Sumitomo'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 SSUMY is an impressive value stock right now.
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Are Investors Undervaluing Sumitomo (SSUMY) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Sumitomo (SSUMY - Free Report) . SSUMY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.51 right now. For comparison, its industry sports an average P/E of 16.99. Over the last 12 months, SSUMY's Forward P/E has been as high as 9.51 and as low as 6.41, with a median of 8.02.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. SSUMY has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.
Finally, we should also recognize that SSUMY has a P/CF ratio of 7.29. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SSUMY's current P/CF looks attractive when compared to its industry's average P/CF of 25.59. Over the past year, SSUMY's P/CF has been as high as 7.36 and as low as 4.15, with a median of 6.18.
These are just a handful of the figures considered in Sumitomo'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 SSUMY is an impressive value stock right now.