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Is Orion Engineered Carbons (OEC) Stock Undervalued Right Now?
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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, 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.
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 value investors might notice is Orion Engineered Carbons (OEC - Free Report) . OEC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.17 right now. For comparison, its industry sports an average P/E of 17.86. Over the last 12 months, OEC's Forward P/E has been as high as 15.94 and as low as 4.20, with a median of 9.50.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OEC has a P/S ratio of 0.6. This compares to its industry's average P/S of 0.91.
Finally, investors should note that OEC has a P/CF ratio of 5.52. 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. OEC's current P/CF looks attractive when compared to its industry's average P/CF of 11.73. Over the past 52 weeks, OEC's P/CF has been as high as 6.78 and as low as 2.11, with a median of 5.15.
Value investors will likely look at more than just these metrics, but the above data helps show that Orion Engineered Carbons is likely undervalued currently. And when considering the strength of its earnings outlook, OEC sticks out at as one of the market's strongest value stocks.
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Is Orion Engineered Carbons (OEC) Stock Undervalued Right Now?
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, 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.
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 value investors might notice is Orion Engineered Carbons (OEC - Free Report) . OEC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.17 right now. For comparison, its industry sports an average P/E of 17.86. Over the last 12 months, OEC's Forward P/E has been as high as 15.94 and as low as 4.20, with a median of 9.50.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OEC has a P/S ratio of 0.6. This compares to its industry's average P/S of 0.91.
Finally, investors should note that OEC has a P/CF ratio of 5.52. 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. OEC's current P/CF looks attractive when compared to its industry's average P/CF of 11.73. Over the past 52 weeks, OEC's P/CF has been as high as 6.78 and as low as 2.11, with a median of 5.15.
Value investors will likely look at more than just these metrics, but the above data helps show that Orion Engineered Carbons is likely undervalued currently. And when considering the strength of its earnings outlook, OEC sticks out at as one of the market's strongest value stocks.