Back to top

Image: Bigstock

Is Centrus Energy (LEU) a Great Value Stock Right Now?

Read MoreHide Full Article

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 value investors might notice is Centrus Energy (LEU - Free Report) . LEU 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 8.59, which compares to its industry's average of 9.49. Over the last 12 months, LEU's Forward P/E has been as high as 25.82 and as low as 5.79, with a median of 12.66.

Finally, investors will want to recognize that LEU has a P/CF ratio of 2.22. 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. LEU's P/CF compares to its industry's average P/CF of 5.93. Over the past year, LEU's P/CF has been as high as 15.99 and as low as 1.53, with a median of 6.30.

Investors could also keep in mind Lundin Mining (LUNMF - Free Report) , an Mining - Non Ferrous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Additionally, Lundin Mining has a P/B ratio of 0.90 while its industry's price-to-book ratio sits at 1.81. For LUNMF, this valuation metric has been as high as 1.56, as low as 0.90, with a median of 1.28 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Centrus Energy and Lundin Mining are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LEU and LUNMF feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Lundin Mining Corp. (LUNMF) - free report >>

Centrus Energy Corp. (LEU) - free report >>

Published in