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Is Olin (OLN) Stock Undervalued Right Now?

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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.

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.

Olin (OLN - Free Report) is a stock many investors are watching right now. OLN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7, while its industry has an average P/E of 12.31. OLN's Forward P/E has been as high as 1,647.71 and as low as -5,005.03, with a median of 9.38, all within the past year.

Finally, investors should note that OLN has a P/CF ratio of 6.84. 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. OLN's P/CF compares to its industry's average P/CF of 10.91. Over the past year, OLN's P/CF has been as high as 21.07 and as low as 4.51, with a median of 12.04.

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


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