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Are Investors Undervaluing Chemours (CC) 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.

Chemours (CC - Free Report) is a stock many investors are watching right now. CC 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 7.54. This compares to its industry's average Forward P/E of 12.21. Over the last 12 months, CC's Forward P/E has been as high as 12.18 and as low as 6.94, with a median of 9.98.

Investors will also notice that CC has a PEG ratio of 0.25. 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 PEG compares to its industry's average PEG of 0.54. Within the past year, CC's PEG has been as high as 0.45 and as low as 0.23, with a median of 0.31.

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 0.86. This compares to its industry's average P/S of 1.02.

Finally, we should also recognize that CC has a P/CF ratio of 8.55. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 11.03. Within the past 12 months, CC's P/CF has been as high as 22.03 and as low as 7.22, with a median of 9.56.

These are only a few of the key metrics included in Chemours's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CC looks like an impressive value stock at the moment.


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