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Are Investors Undervaluing Cervecerias Unidas (CCU) 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 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 to watch right now is Cervecerias Unidas (CCU - Free Report) . CCU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 23.03. This compares to its industry's average Forward P/E of 28.47. CCU's Forward P/E has been as high as 26.01 and as low as 13.74, with a median of 22.33, all within the past year.
Investors should also note that CCU holds a PEG ratio of 2.27. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CCU's industry has an average PEG of 4.97 right now. CCU's PEG has been as high as 14.37 and as low as 2.11, with a median of 12.69, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CCU has a P/S ratio of 1.44. This compares to its industry's average P/S of 2.75.
Finally, investors will want to recognize that CCU has a P/CF ratio of 27.27. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 86.31. Over the past year, CCU's P/CF has been as high as 27.27 and as low as 12.40, with a median of 20.62.
These are just a handful of the figures considered in Cervecerias Unidas'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 CCU is an impressive value stock right now.
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Are Investors Undervaluing Cervecerias Unidas (CCU) Right Now?
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 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 to watch right now is Cervecerias Unidas (CCU - Free Report) . CCU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 23.03. This compares to its industry's average Forward P/E of 28.47. CCU's Forward P/E has been as high as 26.01 and as low as 13.74, with a median of 22.33, all within the past year.
Investors should also note that CCU holds a PEG ratio of 2.27. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CCU's industry has an average PEG of 4.97 right now. CCU's PEG has been as high as 14.37 and as low as 2.11, with a median of 12.69, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CCU has a P/S ratio of 1.44. This compares to its industry's average P/S of 2.75.
Finally, investors will want to recognize that CCU has a P/CF ratio of 27.27. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 86.31. Over the past year, CCU's P/CF has been as high as 27.27 and as low as 12.40, with a median of 20.62.
These are just a handful of the figures considered in Cervecerias Unidas'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 CCU is an impressive value stock right now.