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Should Value Investors Buy Compania Cervecerias Unidas (CCU) Stock?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Compania Cervecerias Unidas (CCU - Free Report) . CCU is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.69. This compares to its industry's average Forward P/E of 18.43. 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 11.55.
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 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 0.66. This compares to its industry's average P/S of 1.76.
Finally, our model also underscores that CCU has a P/CF ratio of 17.50. 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 49.91. CCU's P/CF has been as high as 25.78 and as low as 16.48, with a median of 21.28, all within the past year.
These are just a handful of the figures considered in Compania Cervecerias Unidas'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 CCU is an impressive value stock right now.
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Should Value Investors Buy Compania Cervecerias Unidas (CCU) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Compania Cervecerias Unidas (CCU - Free Report) . CCU is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.69. This compares to its industry's average Forward P/E of 18.43. 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 11.55.
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 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 0.66. This compares to its industry's average P/S of 1.76.
Finally, our model also underscores that CCU has a P/CF ratio of 17.50. 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 49.91. CCU's P/CF has been as high as 25.78 and as low as 16.48, with a median of 21.28, all within the past year.
These are just a handful of the figures considered in Compania Cervecerias Unidas'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 CCU is an impressive value stock right now.