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Should Value Investors Buy Mr. Cooper Group (COOP) Stock?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Mr. Cooper Group (COOP - Free Report) . COOP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another notable valuation metric for COOP is its P/B ratio of 0.82. The P/B ratio pits a stock's market value against 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 0.86. Over the past 12 months, COOP's P/B has been as high as 1.14 and as low as 0.65, with a median of 0.77.

Finally, investors should note that COOP has a P/CF ratio of 3.50. 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. COOP's current P/CF looks attractive when compared to its industry's average P/CF of 3.73. COOP's P/CF has been as high as 3.56 and as low as 1.80, with a median of 2.57, 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 Mr. Cooper Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, COOP feels like a great value stock at the moment.


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