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Are Investors Undervaluing Crown Holdings (CCK) 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, 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 value investors might notice is Crown Holdings (CCK - Free Report) . CCK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.97. This compares to its industry's average Forward P/E of 19.44. CCK's Forward P/E has been as high as 16.26 and as low as 11.05, with a median of 13.83, all within the past year.

We also note that CCK holds a PEG ratio of 2.99. 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 industry has an average PEG of 3.89 right now. Over the past 52 weeks, CCK's PEG has been as high as 3.25 and as low as 1.58, with a median of 2.77.

Investors should also recognize that CCK has a P/B ratio of 5.51. 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 company's current P/B looks solid when compared to 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 3.78, with a median of 4.75.

Finally, we should also recognize that CCK has a P/CF ratio of 13.53. 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. CCK's P/CF compares to its industry's average P/CF of 17.76. Within the past 12 months, CCK's P/CF has been as high as 13.53 and as low as 7.65, with a median of 10.75.

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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