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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Cabot (CBT - Free Report) . CBT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.81. This compares to its industry's average Forward P/E of 16.55. Over the past year, CBT's Forward P/E has been as high as 19.35 and as low as 5.51, with a median of 13.52.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CBT has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.06.
Finally, investors will want to recognize that CBT has a P/CF ratio of 10.65. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CBT's current P/CF looks attractive when compared to its industry's average P/CF of 11.73. CBT's P/CF has been as high as 10.99 and as low as 4.28, with a median of 8.99, all within the past year.
These are just a handful of the figures considered in Cabot's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CBT is an impressive value stock right now.
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Is Cabot (CBT) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Cabot (CBT - Free Report) . CBT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.81. This compares to its industry's average Forward P/E of 16.55. Over the past year, CBT's Forward P/E has been as high as 19.35 and as low as 5.51, with a median of 13.52.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CBT has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.06.
Finally, investors will want to recognize that CBT has a P/CF ratio of 10.65. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CBT's current P/CF looks attractive when compared to its industry's average P/CF of 11.73. CBT's P/CF has been as high as 10.99 and as low as 4.28, with a median of 8.99, all within the past year.
These are just a handful of the figures considered in Cabot's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CBT is an impressive value stock right now.