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CC vs. ALB: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Chemical - Diversified stocks have likely encountered both Chemours (CC - Free Report) and Albemarle (ALB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Chemours has a Zacks Rank of #2 (Buy), while Albemarle has a Zacks Rank of #3 (Hold) right now. This means that CC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CC currently has a forward P/E ratio of 7.65, while ALB has a forward P/E of 70.40. We also note that CC has a PEG ratio of 0.22. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALB currently has a PEG ratio of 3.20.
Another notable valuation metric for CC is its P/B ratio of 5.13. 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. For comparison, ALB has a P/B of 5.47.
These are just a few of the metrics contributing to CC's Value grade of A and ALB's Value grade of D.
CC sticks out from ALB in both our Zacks Rank and Style Scores models, so value investors will likely feel that CC is the better option right now.
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CC vs. ALB: Which Stock Should Value Investors Buy Now?
Investors with an interest in Chemical - Diversified stocks have likely encountered both Chemours (CC - Free Report) and Albemarle (ALB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Chemours has a Zacks Rank of #2 (Buy), while Albemarle has a Zacks Rank of #3 (Hold) right now. This means that CC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CC currently has a forward P/E ratio of 7.65, while ALB has a forward P/E of 70.40. We also note that CC has a PEG ratio of 0.22. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALB currently has a PEG ratio of 3.20.
Another notable valuation metric for CC is its P/B ratio of 5.13. 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. For comparison, ALB has a P/B of 5.47.
These are just a few of the metrics contributing to CC's Value grade of A and ALB's Value grade of D.
CC sticks out from ALB in both our Zacks Rank and Style Scores models, so value investors will likely feel that CC is the better option right now.