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Is Silgan Holdings (SLGN) a Great Value Stock 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Silgan Holdings (SLGN - Free Report) . SLGN 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 11.47, while its industry has an average P/E of 17.61. SLGN's Forward P/E has been as high as 12.90 and as low as 10.51, with a median of 11.50, all within the past year.
We also note that SLGN holds a PEG ratio of 2.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SLGN's PEG compares to its industry's average PEG of 3.52. Over the past 52 weeks, SLGN's PEG has been as high as 2.58 and as low as 2.10, with a median of 2.30.
Another notable valuation metric for SLGN is its P/B ratio of 3.17. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SLGN's current P/B looks attractive when compared to its industry's average P/B of 7.18. SLGN's P/B has been as high as 3.83 and as low as 2.85, with a median of 3.21, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SLGN has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.33.
Finally, investors will want to recognize that SLGN has a P/CF ratio of 8.12. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.31. Over the past year, SLGN's P/CF has been as high as 9.07 and as low as 7.21, with a median of 7.97.
These are only a few of the key metrics included in Silgan Holdings'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, SLGN looks like an impressive value stock at the moment.
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Is Silgan Holdings (SLGN) a Great Value Stock Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Silgan Holdings (SLGN - Free Report) . SLGN 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 11.47, while its industry has an average P/E of 17.61. SLGN's Forward P/E has been as high as 12.90 and as low as 10.51, with a median of 11.50, all within the past year.
We also note that SLGN holds a PEG ratio of 2.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SLGN's PEG compares to its industry's average PEG of 3.52. Over the past 52 weeks, SLGN's PEG has been as high as 2.58 and as low as 2.10, with a median of 2.30.
Another notable valuation metric for SLGN is its P/B ratio of 3.17. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SLGN's current P/B looks attractive when compared to its industry's average P/B of 7.18. SLGN's P/B has been as high as 3.83 and as low as 2.85, with a median of 3.21, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SLGN has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.33.
Finally, investors will want to recognize that SLGN has a P/CF ratio of 8.12. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.31. Over the past year, SLGN's P/CF has been as high as 9.07 and as low as 7.21, with a median of 7.97.
These are only a few of the key metrics included in Silgan Holdings'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, SLGN looks like an impressive value stock at the moment.