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Is Vonovia (VONOY) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company value investors might notice is Vonovia (VONOY - Free Report) . VONOY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.28. This compares to its industry's average Forward P/E of 13.97. VONOY's Forward P/E has been as high as 17.21 and as low as 7.17, with a median of 10.97, all within the past year.

Finally, we should also recognize that VONOY has a P/CF ratio of 3.28. 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. VONOY's P/CF compares to its industry's average P/CF of 6.65. VONOY's P/CF has been as high as 5.59 and as low as 2.13, with a median of 3.56, all within the past year.

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


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