Back to top

Image: Bigstock

Is Silgan Holdings (SLGN) a Great Value Stock Right Now?

Read MoreHide Full Article

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Silgan Holdings (SLGN - Free Report) . SLGN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 13.49. This compares to its industry's average Forward P/E of 18.82. Over the past year, SLGN's Forward P/E has been as high as 15.28 and as low as 10.79, with a median of 13.28.

We also note that SLGN holds a PEG ratio of 2.70. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SLGN's industry has an average PEG of 3.76 right now. SLGN's PEG has been as high as 3.06 and as low as 1.48, with a median of 1.77, all within the past year.

Investors should also recognize that SLGN has a P/B ratio of 3.87. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.84. Over the past 12 months, SLGN's P/B has been as high as 3.88 and as low as 2.74, with a median of 3.51.

Finally, our model also underscores that SLGN has a P/CF ratio of 9.18. 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. SLGN's P/CF compares to its industry's average P/CF of 17.76. Within the past 12 months, SLGN's P/CF has been as high as 9.52 and as low as 6.99, with a median of 8.48.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Silgan Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SLGN feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Silgan Holdings Inc. (SLGN) - free report >>

Published in