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Are Investors Undervaluing Consol Energy (CEIX) Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Consol Energy (CEIX - Free Report) is a stock many investors are watching right now. CEIX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 2.34. This compares to its industry's average Forward P/E of 3.76. Over the past 52 weeks, CEIX's Forward P/E has been as high as 7.72 and as low as 2.34, with a median of 3.29.

Finally, we should also recognize that CEIX has a P/CF ratio of 3.47. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.66. CEIX's P/CF has been as high as 8.60 and as low as 2.74, with a median of 5.20, all within the past year.

These are only a few of the key metrics included in Consol Energy'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, CEIX looks like an impressive value stock at the moment.


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