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Is CCA (CXW) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is CCA . CXW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.64, which compares to its industry's average of 15.86. Over the last 12 months, CXW's Forward P/E has been as high as 11.84 and as low as 8.53, with a median of 10.03.

We also note that CXW holds a PEG ratio of 1.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CXW's PEG compares to its industry's average PEG of 2.84. CXW's PEG has been as high as 1.97 and as low as 1.42, with a median of 1.67, all within the past year.

We should also highlight that CXW has a P/B ratio of 2.06. 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. This stock's P/B looks solid versus its industry's average P/B of 2.57. Within the past 52 weeks, CXW's P/B has been as high as 2.17 and as low as 1.57, with a median of 1.84.

Finally, investors should note that CXW has a P/CF ratio of 9.45. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CXW's current P/CF looks attractive when compared to its industry's average P/CF of 13.92. Within the past 12 months, CXW's P/CF has been as high as 9.76 and as low as 6.95, with a median of 8.02.

These are only a few of the key metrics included in CCA's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CXW looks like an impressive value stock at the moment.


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