Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Sumitomo (SSUMY - Free Report) is a stock many investors are watching right now. SSUMY 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 8.88 right now. For comparison, its industry sports an average P/E of 20.08. Over the last 12 months, SSUMY's Forward P/E has been as high as 8.88 and as low as 5.10, with a median of 7.84.
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. SSUMY has a P/S ratio of 0.57. This compares to its industry's average P/S of 0.93.
Finally, our model also underscores that SSUMY has a P/CF ratio of 5.65. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SSUMY's current P/CF looks attractive when compared to its industry's average P/CF of 16.54. Within the past 12 months, SSUMY's P/CF has been as high as 5.65 and as low as 3.82, with a median of 4.93.
Value investors will likely look at more than just these metrics, but the above data helps show that Sumitomo is likely undervalued currently. And when considering the strength of its earnings outlook, SSUMY sticks out at as one of the market's strongest value stocks.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Sumitomo (SSUMY - Free Report) is a stock many investors are watching right now. SSUMY 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 8.88 right now. For comparison, its industry sports an average P/E of 20.08. Over the last 12 months, SSUMY's Forward P/E has been as high as 8.88 and as low as 5.10, with a median of 7.84.
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. SSUMY has a P/S ratio of 0.57. This compares to its industry's average P/S of 0.93.
Finally, our model also underscores that SSUMY has a P/CF ratio of 5.65. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SSUMY's current P/CF looks attractive when compared to its industry's average P/CF of 16.54. Within the past 12 months, SSUMY's P/CF has been as high as 5.65 and as low as 3.82, with a median of 4.93.
Value investors will likely look at more than just these metrics, but the above data helps show that Sumitomo is likely undervalued currently. And when considering the strength of its earnings outlook, SSUMY sticks out at as one of the market's strongest value stocks.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
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