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Should Value Investors Buy OchZiff Capital Management Group LLC (SCU) Stock?

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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.

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 OchZiff Capital Management Group LLC (SCU - Free Report) . SCU is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.10, which compares to its industry's average of 13.64. Over the past 52 weeks, SCU's Forward P/E has been as high as 9.11 and as low as 3.09, with a median of 4.80.

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. SCU has a P/S ratio of 1.74. This compares to its industry's average P/S of 2.94.

These are only a few of the key metrics included in OchZiff Capital Management Group LLC's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SCU looks like an impressive value stock at the moment.


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