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Is Compania Cervecerias Unidas (CCU) Stock Undervalued 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Compania Cervecerias Unidas (CCU - Free Report) is a stock many investors are watching right now. CCU is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.85, which compares to its industry's average of 18.66. Over the past year, CCU's Forward P/E has been as high as 16.74 and as low as 6.90, with a median of 11.92.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.7. This compares to its industry's average P/S of 1.87.
Finally, our model also underscores that CCU has a P/CF ratio of 18.60. 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. CCU's current P/CF looks attractive when compared to its industry's average P/CF of 50.73. Over the past 52 weeks, CCU's P/CF has been as high as 25.78 and as low as 16.48, with a median of 21.60.
These are only a few of the key metrics included in Compania Cervecerias Unidas's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CCU looks like an impressive value stock at the moment.
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Is Compania Cervecerias Unidas (CCU) Stock Undervalued Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Compania Cervecerias Unidas (CCU - Free Report) is a stock many investors are watching right now. CCU is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.85, which compares to its industry's average of 18.66. Over the past year, CCU's Forward P/E has been as high as 16.74 and as low as 6.90, with a median of 11.92.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.7. This compares to its industry's average P/S of 1.87.
Finally, our model also underscores that CCU has a P/CF ratio of 18.60. 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. CCU's current P/CF looks attractive when compared to its industry's average P/CF of 50.73. Over the past 52 weeks, CCU's P/CF has been as high as 25.78 and as low as 16.48, with a median of 21.60.
These are only a few of the key metrics included in Compania Cervecerias Unidas's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CCU looks like an impressive value stock at the moment.