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Are Investors Undervaluing OI Glass (OI) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

OI Glass (OI - Free Report) is a stock many investors are watching right now. OI 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 5.82. This compares to its industry's average Forward P/E of 8.66. Over the last 12 months, OI's Forward P/E has been as high as 9.92 and as low as 5.82, with a median of 7.45.

Investors should also note that OI holds a PEG ratio of 0.39. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OI's PEG compares to its industry's average PEG of 0.58. Within the past year, OI's PEG has been as high as 2.67 and as low as 0.39, with a median of 1.18.

Another notable valuation metric for OI is its 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 solid versus its industry's average P/B of 1.51. Within the past 52 weeks, OI's P/B has been as high as 2.38 and as low as 1.37, with a median of 1.76.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OI has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.47.

Finally, we should also recognize that OI has a P/CF ratio of 2.91. 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. OI's current P/CF looks attractive when compared to its industry's average P/CF of 3.16. Over the past year, OI's P/CF has been as high as 3.60 and as low as 1.91, with a median of 2.92.

These are just a handful of the figures considered in OI Glass'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 OI is an impressive value stock right now.

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