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Should Value Investors Buy OUTOKUMPO OY (OUTKY) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

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 company value investors might notice is OUTOKUMPO OY (OUTKY - Free Report) . OUTKY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 17.46, which compares to its industry's average of 18.81. Over the past year, OUTKY's Forward P/E has been as high as 150.01 and as low as -12.34, with a median of 14.57.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OUTKY has a P/S ratio of 0.13. This compares to its industry's average P/S of 0.14.

Finally, investors should note that OUTKY has a P/CF ratio of 5.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. OUTKY's current P/CF looks attractive when compared to its industry's average P/CF of 8.71. Within the past 12 months, OUTKY's P/CF has been as high as 12.37 and as low as 3.88, with a median of 5.83.

Value investors will likely look at more than just these metrics, but the above data helps show that OUTOKUMPO OY is likely undervalued currently. And when considering the strength of its earnings outlook, OUTKY sticks out at as one of the market's strongest value stocks.


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