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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Cosan . CZZ is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 15.98. This compares to its industry's average Forward P/E of 22.39. Over the last 12 months, CZZ's Forward P/E has been as high as 20.95 and as low as 11.94, with a median of 14.31.
CZZ is also sporting a PEG ratio of 1.01. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CZZ's PEG compares to its industry's average PEG of 1.41. CZZ's PEG has been as high as 1.32 and as low as 0.76, with a median of 0.88, all within the past year.
Another valuation metric that we should highlight is CZZ's P/B ratio of 1.30. The P/B ratio pits a stock's market value against 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 1.66. Over the past 12 months, CZZ's P/B has been as high as 1.37 and as low as 0.54, with a median of 0.84.
Finally, investors will want to recognize that CZZ has a P/CF ratio of 4.87. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CZZ's current P/CF looks attractive when compared to its industry's average P/CF of 15.05. CZZ's P/CF has been as high as 5.13 and as low as 2.95, with a median of 3.55, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Cosan is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CZZ feels like a great value stock at the moment.
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Is Cosan (CZZ) a Great Value Stock 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Cosan . CZZ is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 15.98. This compares to its industry's average Forward P/E of 22.39. Over the last 12 months, CZZ's Forward P/E has been as high as 20.95 and as low as 11.94, with a median of 14.31.
CZZ is also sporting a PEG ratio of 1.01. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CZZ's PEG compares to its industry's average PEG of 1.41. CZZ's PEG has been as high as 1.32 and as low as 0.76, with a median of 0.88, all within the past year.
Another valuation metric that we should highlight is CZZ's P/B ratio of 1.30. The P/B ratio pits a stock's market value against 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 1.66. Over the past 12 months, CZZ's P/B has been as high as 1.37 and as low as 0.54, with a median of 0.84.
Finally, investors will want to recognize that CZZ has a P/CF ratio of 4.87. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CZZ's current P/CF looks attractive when compared to its industry's average P/CF of 15.05. CZZ's P/CF has been as high as 5.13 and as low as 2.95, with a median of 3.55, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Cosan is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CZZ feels like a great value stock at the moment.