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Is OchZiff Capital Management Group LLC (SCU) Stock Undervalued Right Now?

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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.

One company value investors might notice is OchZiff Capital Management Group LLC . SCU is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 6.07 right now. For comparison, its industry sports an average P/E of 13.46. SCU's Forward P/E has been as high as 9.11 and as low as 3.09, with a median of 4.80, all within the past year.

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 1.28. This compares to its industry's average P/S of 3.2.

Finally, investors should note that SCU has a P/CF ratio of 10.70. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 36.66. Over the past year, SCU's P/CF has been as high as 10.70 and as low as 3.44, with a median of 6.83.

Value investors will likely look at more than just these metrics, but the above data helps show that OchZiff Capital Management Group LLC is likely undervalued currently. And when considering the strength of its earnings outlook, SCU sticks out at as one of the market's strongest value stocks.

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