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Are Investors Undervaluing CONTURA ENERGY (CTRA) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is CONTURA ENERGY (CTRA - Free Report) . CTRA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 3.05. This compares to its industry's average Forward P/E of 8.39. Over the past 52 weeks, CTRA's Forward P/E has been as high as 5.53 and as low as 3.04, with a median of 4.18.
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. CTRA has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.62.
Value investors will likely look at more than just these metrics, but the above data helps show that CONTURA ENERGY is likely undervalued currently. And when considering the strength of its earnings outlook, CTRA sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing CONTURA ENERGY (CTRA) Right Now?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is CONTURA ENERGY (CTRA - Free Report) . CTRA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 3.05. This compares to its industry's average Forward P/E of 8.39. Over the past 52 weeks, CTRA's Forward P/E has been as high as 5.53 and as low as 3.04, with a median of 4.18.
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. CTRA has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.62.
Value investors will likely look at more than just these metrics, but the above data helps show that CONTURA ENERGY is likely undervalued currently. And when considering the strength of its earnings outlook, CTRA sticks out at as one of the market's strongest value stocks.