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Are Investors Undervaluing Celestica (CLS) 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.
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.
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 Celestica (CLS - Free Report) . CLS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.22. This compares to its industry's average Forward P/E of 17.41. Over the past year, CLS's Forward P/E has been as high as 16.31 and as low as 6.66, with a median of 9.36.
Investors should also recognize that CLS has a P/B ratio of 0.83. 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. This stock's P/B looks attractive against its industry's average P/B of 2.33. CLS's P/B has been as high as 1.02 and as low as 0.58, with a median of 0.69, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CLS has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.28.
Finally, we should also recognize that CLS has a P/CF ratio of 4.28. 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. CLS's P/CF compares to its industry's average P/CF of 6.89. Within the past 12 months, CLS's P/CF has been as high as 7.29 and as low as 3.02, with a median of 3.61.
These are just a handful of the figures considered in Celestica'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 CLS is an impressive value stock right now.
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Are Investors Undervaluing Celestica (CLS) 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.
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.
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 Celestica (CLS - Free Report) . CLS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.22. This compares to its industry's average Forward P/E of 17.41. Over the past year, CLS's Forward P/E has been as high as 16.31 and as low as 6.66, with a median of 9.36.
Investors should also recognize that CLS has a P/B ratio of 0.83. 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. This stock's P/B looks attractive against its industry's average P/B of 2.33. CLS's P/B has been as high as 1.02 and as low as 0.58, with a median of 0.69, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CLS has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.28.
Finally, we should also recognize that CLS has a P/CF ratio of 4.28. 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. CLS's P/CF compares to its industry's average P/CF of 6.89. Within the past 12 months, CLS's P/CF has been as high as 7.29 and as low as 3.02, with a median of 3.61.
These are just a handful of the figures considered in Celestica'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 CLS is an impressive value stock right now.