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Is Clearwater Paper (CLW) Stock Undervalued Right Now?
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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 #1 (Strong Buy) and an A for Value.
Another valuation metric that we should highlight is CLW's P/B ratio of 1.37. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.84. CLW's P/B has been as high as 1.47 and as low as 0.82, with a median of 1.11, 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. 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 0.3. This compares to its industry's average P/S of 0.5.
Finally, we should also recognize that CLW has a P/CF ratio of 5.08. 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 8.94. Over the past year, CLW's P/CF has been as high as 8.20 and as low as 3.78, with a median of 6.32.
Investors could also keep in mind Rayonier Advanced Materials (RYAM - Free Report) , an Paper and Related Products stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of Rayonier Advanced Materials currently holds a Forward P/E ratio of -8.27, and its PEG ratio is -2.74. In comparison, its industry sports average P/E and PEG ratios of 6.64 and 0.78.
RYAM's Forward P/E has been as high as -3.58 and as low as -20.94, with a median of -7.64. During the same time period, its PEG ratio has been as high as -2.58, as low as -9.83, with a median of -3.98.
Rayonier Advanced Materials sports a P/B ratio of 0.38 as well; this compares to its industry's price-to-book ratio of 2.84. In the past 52 weeks, RYAM's P/B has been as high as 0.61, as low as 0.21, with a median of 0.42.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Clearwater Paper and Rayonier Advanced Materials are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CLW and RYAM feels like a great value stock at the moment.
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Is Clearwater Paper (CLW) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 #1 (Strong Buy) and an A for Value.
Another valuation metric that we should highlight is CLW's P/B ratio of 1.37. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.84. CLW's P/B has been as high as 1.47 and as low as 0.82, with a median of 1.11, 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. 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 0.3. This compares to its industry's average P/S of 0.5.
Finally, we should also recognize that CLW has a P/CF ratio of 5.08. 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 8.94. Over the past year, CLW's P/CF has been as high as 8.20 and as low as 3.78, with a median of 6.32.
Investors could also keep in mind Rayonier Advanced Materials (RYAM - Free Report) , an Paper and Related Products stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of Rayonier Advanced Materials currently holds a Forward P/E ratio of -8.27, and its PEG ratio is -2.74. In comparison, its industry sports average P/E and PEG ratios of 6.64 and 0.78.
RYAM's Forward P/E has been as high as -3.58 and as low as -20.94, with a median of -7.64. During the same time period, its PEG ratio has been as high as -2.58, as low as -9.83, with a median of -3.98.
Rayonier Advanced Materials sports a P/B ratio of 0.38 as well; this compares to its industry's price-to-book ratio of 2.84. In the past 52 weeks, RYAM's P/B has been as high as 0.61, as low as 0.21, with a median of 0.42.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Clearwater Paper and Rayonier Advanced Materials are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CLW and RYAM feels like a great value stock at the moment.