Back to top

Image: Bigstock

Should Value Investors Buy Cabot (CBT) Stock?

Read MoreHide Full Article

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.

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.

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.

Cabot (CBT - Free Report) is a stock many investors are watching right now. CBT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.63, which compares to its industry's average of 13.28. Over the past 52 weeks, CBT's Forward P/E has been as high as 13.25 and as low as 9.20, with a median of 11.23.

Finally, investors should note that CBT has a P/CF ratio of 7.09. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CBT's current P/CF looks attractive when compared to its industry's average P/CF of 8.42. Over the past 52 weeks, CBT's P/CF has been as high as 12 and as low as 6.25, with a median of 8.76.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cabot Corporation (CBT) - free report >>

Published in