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Are Investors Undervaluing Sumitomo (SSUMY) Right Now?
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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.
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.
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.
Sumitomo (SSUMY - Free Report) is a stock many investors are watching right now. SSUMY 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 8.74, which compares to its industry's average of 19.65. SSUMY's Forward P/E has been as high as 8.88 and as low as 5.10, with a median of 7.73, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.54. This compares to its industry's average P/S of 0.81.
Finally, investors will want to recognize that SSUMY has a P/CF ratio of 6.90. 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 16.15. Over the past 52 weeks, SSUMY's P/CF has been as high as 7.01 and as low as 3.82, with a median of 5.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sumitomo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SSUMY feels like a great value stock at the moment.
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Are Investors Undervaluing Sumitomo (SSUMY) 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.
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.
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.
Sumitomo (SSUMY - Free Report) is a stock many investors are watching right now. SSUMY 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 8.74, which compares to its industry's average of 19.65. SSUMY's Forward P/E has been as high as 8.88 and as low as 5.10, with a median of 7.73, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.54. This compares to its industry's average P/S of 0.81.
Finally, investors will want to recognize that SSUMY has a P/CF ratio of 6.90. 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 16.15. Over the past 52 weeks, SSUMY's P/CF has been as high as 7.01 and as low as 3.82, with a median of 5.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sumitomo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SSUMY feels like a great value stock at the moment.