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Are Investors Undervaluing Crown Holdings (CCK) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 to watch right now is Crown Holdings (CCK - Free Report) . CCK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.94. This compares to its industry's average Forward P/E of 19.64. CCK's Forward P/E has been as high as 16.26 and as low as 7.97, with a median of 13.72, all within the past year.

Investors should also note that CCK holds a PEG ratio of 2.79. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CCK's PEG compares to its industry's average PEG of 3.93. CCK's PEG has been as high as 3.25 and as low as 1.14, with a median of 2.74, all within the past year.

We should also highlight that CCK has a P/B ratio of 5.07. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.84. Within the past 52 weeks, CCK's P/B has been as high as 5.80 and as low as 2.83, with a median of 4.58.

Finally, investors should note that CCK has a P/CF ratio of 12.46. 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. CCK's current P/CF looks attractive when compared to its industry's average P/CF of 17.76. Over the past 52 weeks, CCK's P/CF has been as high as 13.10 and as low as 5.76, with a median of 10.19.

These are just a handful of the figures considered in Crown Holdings'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 CCK is an impressive value stock right now.


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