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Should Value Investors Buy Clearwater Paper (CLW) Stock?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Clearwater Paper (CLW - Free Report) . CLW is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that CLW has a P/B ratio of 1.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.14. Over the past 12 months, CLW's P/B has been as high as 1.49 and as low as 0.81, with a median of 1.04.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CLW has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.52.
Finally, investors will want to recognize that CLW has a P/CF ratio of 6.82. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CLW's P/CF compares to its industry's average P/CF of 7.88. Over the past year, CLW's P/CF has been as high as 8.20 and as low as 2.51, with a median of 5.82.
Investors could also keep in mind Mercer International (MERC - Free Report) , an Paper and Related Products stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Furthermore, Mercer International holds a P/B ratio of 1.38 and its industry's price-to-book ratio is 1.14. MERC's P/B has been as high as 1.99, as low as 1.04, with a median of 1.24 over the past 12 months.
These are just a handful of the figures considered in Clearwater Paper and Mercer International'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 CLW and MERC is an impressive value stock right now.
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Should Value Investors Buy Clearwater Paper (CLW) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Clearwater Paper (CLW - Free Report) . CLW is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that CLW has a P/B ratio of 1.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.14. Over the past 12 months, CLW's P/B has been as high as 1.49 and as low as 0.81, with a median of 1.04.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CLW has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.52.
Finally, investors will want to recognize that CLW has a P/CF ratio of 6.82. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CLW's P/CF compares to its industry's average P/CF of 7.88. Over the past year, CLW's P/CF has been as high as 8.20 and as low as 2.51, with a median of 5.82.
Investors could also keep in mind Mercer International (MERC - Free Report) , an Paper and Related Products stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Furthermore, Mercer International holds a P/B ratio of 1.38 and its industry's price-to-book ratio is 1.14. MERC's P/B has been as high as 1.99, as low as 1.04, with a median of 1.24 over the past 12 months.
These are just a handful of the figures considered in Clearwater Paper and Mercer International'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 CLW and MERC is an impressive value stock right now.