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Is Cosan (CZZ) Stock Undervalued 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.

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 stock to keep an eye on is Cosan . CZZ is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.66 right now. For comparison, its industry sports an average P/E of 16.71. Over the past 52 weeks, CZZ's Forward P/E has been as high as 19.16 and as low as 2.82, with a median of 11.25.

Another notable valuation metric for CZZ is its P/B ratio of 0.67. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CZZ's current P/B looks attractive when compared to its industry's average P/B of 1.15. CZZ's P/B has been as high as 0.73 and as low as 0.34, with a median of 0.48, over the past year.

Finally, we should also recognize that CZZ has a P/CF ratio of 3.19. 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. CZZ's P/CF compares to its industry's average P/CF of 3.61. Over the past 52 weeks, CZZ's P/CF has been as high as 3.59 and as low as 1.81, with a median of 2.70.

These are only a few of the key metrics included in Cosan'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, CZZ looks like an impressive value stock at the moment.

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