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Is Crown Holdings (CCK) a Great Value Stock Right Now?

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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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Crown Holdings (CCK - Free Report) is a stock many investors are watching right now. CCK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.83. This compares to its industry's average Forward P/E of 19.53. Over the last 12 months, CCK's Forward P/E has been as high as 16.26 and as low as 9.62, with a median of 13.76.

We also note that CCK holds a PEG ratio of 2.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CCK's PEG compares to its industry's average PEG of 3.91. Over the past 52 weeks, CCK's PEG has been as high as 3.25 and as low as 1.37, with a median of 2.75.

Investors should also recognize that CCK has a P/B ratio of 5.06. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CCK's current P/B looks attractive when compared to its industry's average P/B of 6.84. Over the past 12 months, CCK's P/B has been as high as 5.80 and as low as 3.42, with a median of 4.65.

Finally, our model also underscores that CCK has a P/CF ratio of 12.42. 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 P/CF compares to its industry's average P/CF of 17.76. CCK's P/CF has been as high as 13.10 and as low as 6.96, with a median of 10.37, all within the past year.

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


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