The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Univar Solutions . UNVR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.45, which compares to its industry's average of 9.48. Over the past year, UNVR's Forward P/E has been as high as 15.66 and as low as 8.45, with a median of 13.21.
UNVR is also sporting a PEG ratio of 0.54. 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. UNVR's industry currently sports an average PEG of 0.59. Over the past 52 weeks, UNVR's PEG has been as high as 1.21 and as low as 0.54, with a median of 0.99.
Another notable valuation metric for UNVR is its P/B ratio of 1.80. 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. This stock's P/B looks solid versus its industry's average P/B of 1.97. UNVR's P/B has been as high as 2.52 and as low as 1.80, with a median of 2.05, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UNVR has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.74.
Finally, investors will want to recognize that UNVR has a P/CF ratio of 5.91. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. UNVR's current P/CF looks attractive when compared to its industry's average P/CF of 6.21. Over the past year, UNVR's P/CF has been as high as 15.62 and as low as 5.91, with a median of 8.88.
These are only a few of the key metrics included in Univar Solutions'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, UNVR looks like an impressive value stock at the moment.
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Is Univar Solutions (UNVR) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Univar Solutions . UNVR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.45, which compares to its industry's average of 9.48. Over the past year, UNVR's Forward P/E has been as high as 15.66 and as low as 8.45, with a median of 13.21.
UNVR is also sporting a PEG ratio of 0.54. 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. UNVR's industry currently sports an average PEG of 0.59. Over the past 52 weeks, UNVR's PEG has been as high as 1.21 and as low as 0.54, with a median of 0.99.
Another notable valuation metric for UNVR is its P/B ratio of 1.80. 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. This stock's P/B looks solid versus its industry's average P/B of 1.97. UNVR's P/B has been as high as 2.52 and as low as 1.80, with a median of 2.05, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UNVR has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.74.
Finally, investors will want to recognize that UNVR has a P/CF ratio of 5.91. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. UNVR's current P/CF looks attractive when compared to its industry's average P/CF of 6.21. Over the past year, UNVR's P/CF has been as high as 15.62 and as low as 5.91, with a median of 8.88.
These are only a few of the key metrics included in Univar Solutions'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, UNVR looks like an impressive value stock at the moment.