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Is SunCoke Energy (SXC) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 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.

SunCoke Energy (SXC - Free Report) is a stock many investors are watching right now. SXC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We should also highlight that SXC has a P/B ratio of 1.27. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.57. Within the past 52 weeks, SXC's P/B has been as high as 1.51 and as low as 0.96, with a median of 1.12.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SXC has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.98.

Finally, our model also underscores that SXC has a P/CF ratio of 3.88. 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 4.92. SXC's P/CF has been as high as 4.98 and as low as 3.12, with a median of 3.86, all within the past year.

These are just a handful of the figures considered in SunCoke Energy'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 SXC is an impressive value stock right now.


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