Back to top

Image: Bigstock

Are Investors Undervaluing Chemours (CC) Right Now?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.

Chemours (CC - Free Report) is a stock many investors are watching right now. CC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.53, while its industry has an average P/E of 14.61. Over the past year, CC's Forward P/E has been as high as 12.18 and as low as 7.85, with a median of 10.37.

We also note that CC holds a PEG ratio of 0.44. 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. CC's industry has an average PEG of 0.75 right now. Over the last 12 months, CC's PEG has been as high as 0.45 and as low as 0.40, with a median of 0.43.

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. CC has a P/S ratio of 1.22. This compares to its industry's average P/S of 1.25.

Finally, investors should note that CC has a P/CF ratio of 11.47. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.63. Over the past year, CC's P/CF has been as high as 22.03 and as low as 7.22, with a median of 11.69.

These are just a handful of the figures considered in Chemours'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 CC is an impressive value stock right now.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

The Chemours Company (CC) - free report >>

Published in