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Is Cabot (CBT) Stock Undervalued Right Now?

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

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.

One company to watch right now is Cabot (CBT - Free Report) . CBT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.44. This compares to its industry's average Forward P/E of 14.67. Over the last 12 months, CBT's Forward P/E has been as high as 13.25 and as low as 10.29, with a median of 11.41.

Finally, investors will want to recognize that CBT has a P/CF ratio of 7.40. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.91. CBT's P/CF has been as high as 9.60 and as low as 6.25, with a median of 8.56, all within the past year.

Koppers (KOP - Free Report) may be another strong Chemical - Diversified stock to add to your shortlist. KOP is a # 2 (Buy) stock with a Value grade of A.

Additionally, Koppers has a P/B ratio of 2.05 while its industry's price-to-book ratio sits at 2.08. For KOP, this valuation metric has been as high as 2.28, as low as 1.39, with a median of 1.69 over the past year.

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


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