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Should Value Investors Buy Compania Cervecerias Unidas (CCU) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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.
Compania Cervecerias Unidas (CCU - Free Report) is a stock many investors are watching right now. CCU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.77, while its industry has an average P/E of 20.28. CCU's Forward P/E has been as high as 17.47 and as low as 10.22, with a median of 12.74, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CCU has a P/S ratio of 0.98. This compares to its industry's average P/S of 1.74.
Finally, investors should note that CCU has a P/CF ratio of 23.88. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CCU's current P/CF looks attractive when compared to its industry's average P/CF of 55.57. Within the past 12 months, CCU's P/CF has been as high as 24.81 and as low as 7.81, with a median of 11.18.
These are just a handful of the figures considered in Compania Cervecerias Unidas's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CCU is an impressive value stock right now.
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Should Value Investors Buy Compania Cervecerias Unidas (CCU) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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.
Compania Cervecerias Unidas (CCU - Free Report) is a stock many investors are watching right now. CCU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.77, while its industry has an average P/E of 20.28. CCU's Forward P/E has been as high as 17.47 and as low as 10.22, with a median of 12.74, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CCU has a P/S ratio of 0.98. This compares to its industry's average P/S of 1.74.
Finally, investors should note that CCU has a P/CF ratio of 23.88. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CCU's current P/CF looks attractive when compared to its industry's average P/CF of 55.57. Within the past 12 months, CCU's P/CF has been as high as 24.81 and as low as 7.81, with a median of 11.18.
These are just a handful of the figures considered in Compania Cervecerias Unidas's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CCU is an impressive value stock right now.