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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 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.
One company value investors might notice is Sumitomo (SSUMY - Free Report) . SSUMY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.74, which compares to its industry's average of 19.24. Over the last 12 months, SSUMY's Forward P/E has been as high as 8.81 and as low as 5.10, with a median of 7.67.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SSUMY has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.85.
Finally, we should also recognize that SSUMY has a P/CF ratio of 6.85. 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. This stock's P/CF looks attractive against its industry's average P/CF of 15.53. SSUMY's P/CF has been as high as 6.85 and as low as 3.82, with a median of 5.81, all within the past year.
These are only a few of the key metrics included in Sumitomo'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, SSUMY looks like an impressive value stock at the moment.
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Is Sumitomo (SSUMY) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 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.
One company value investors might notice is Sumitomo (SSUMY - Free Report) . SSUMY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.74, which compares to its industry's average of 19.24. Over the last 12 months, SSUMY's Forward P/E has been as high as 8.81 and as low as 5.10, with a median of 7.67.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SSUMY has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.85.
Finally, we should also recognize that SSUMY has a P/CF ratio of 6.85. 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. This stock's P/CF looks attractive against its industry's average P/CF of 15.53. SSUMY's P/CF has been as high as 6.85 and as low as 3.82, with a median of 5.81, all within the past year.
These are only a few of the key metrics included in Sumitomo'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, SSUMY looks like an impressive value stock at the moment.