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Is Constellium (CSTM) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is Constellium (CSTM - Free Report) . CSTM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.67, which compares to its industry's average of 5.94. Over the past year, CSTM's Forward P/E has been as high as 14.15 and as low as 5.63, with a median of 11.04.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. CSTM has a P/S ratio of 0.17. This compares to its industry's average P/S of 0.31.
Finally, our model also underscores that CSTM has a P/CF ratio of 2.77. 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. This stock's P/CF looks attractive against its industry's average P/CF of 5.10. Over the past 52 weeks, CSTM's P/CF has been as high as 4.87 and as low as 2.32, with a median of 4.10.
If you're looking for another solid Metal Products - Distribution value stock, take a look at Mitsui & Co. (MITSY - Free Report) . MITSY is a # 1 (Strong Buy) stock with a Value score of A.
Mitsui & Co. is trading at a forward earnings multiple of 5.55 at the moment, with a PEG ratio of 0.26. This compares to its industry's average P/E of 5.94 and average PEG ratio of 0.61.
Over the last 12 months, MITSY's P/E has been as high as 7.42, as low as 4.51, with a median of 6.07, and its PEG ratio has been as high as 0.32, as low as 0.18, with a median of 0.28.
Furthermore, Mitsui & Co. holds a P/B ratio of 0.74 and its industry's price-to-book ratio is 1.33. MITSY's P/B has been as high as 0.99, as low as 0.69, with a median of 0.81 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Constellium and Mitsui & Co. are likely undervalued currently. And when considering the strength of its earnings outlook, CSTM and MITSY sticks out as one of the market's strongest value stocks.
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Is Constellium (CSTM) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is Constellium (CSTM - Free Report) . CSTM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.67, which compares to its industry's average of 5.94. Over the past year, CSTM's Forward P/E has been as high as 14.15 and as low as 5.63, with a median of 11.04.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. CSTM has a P/S ratio of 0.17. This compares to its industry's average P/S of 0.31.
Finally, our model also underscores that CSTM has a P/CF ratio of 2.77. 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. This stock's P/CF looks attractive against its industry's average P/CF of 5.10. Over the past 52 weeks, CSTM's P/CF has been as high as 4.87 and as low as 2.32, with a median of 4.10.
If you're looking for another solid Metal Products - Distribution value stock, take a look at Mitsui & Co. (MITSY - Free Report) . MITSY is a # 1 (Strong Buy) stock with a Value score of A.
Mitsui & Co. is trading at a forward earnings multiple of 5.55 at the moment, with a PEG ratio of 0.26. This compares to its industry's average P/E of 5.94 and average PEG ratio of 0.61.
Over the last 12 months, MITSY's P/E has been as high as 7.42, as low as 4.51, with a median of 6.07, and its PEG ratio has been as high as 0.32, as low as 0.18, with a median of 0.28.
Furthermore, Mitsui & Co. holds a P/B ratio of 0.74 and its industry's price-to-book ratio is 1.33. MITSY's P/B has been as high as 0.99, as low as 0.69, with a median of 0.81 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Constellium and Mitsui & Co. are likely undervalued currently. And when considering the strength of its earnings outlook, CSTM and MITSY sticks out as one of the market's strongest value stocks.