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Is Compania Cervecerias Unidas (CCU) 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, 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.
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 stock to keep an eye on 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 is trading with a P/E ratio of 10.63, which compares to its industry's average of 18.36. 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 11.30.
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. CCU has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.74.
Finally, we should also recognize that CCU has a P/CF ratio of 17.55. 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 P/CF compares to its industry's average P/CF of 49.99. Over the past year, CCU's P/CF has been as high as 25.78 and as low as 16.48, with a median of 20.78.
Value investors will likely look at more than just these metrics, but the above data helps show that Compania Cervecerias Unidas is likely undervalued currently. And when considering the strength of its earnings outlook, CCU sticks out at as one of the market's strongest value stocks.
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Is Compania Cervecerias Unidas (CCU) Stock Undervalued Right Now?
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, 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.
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 stock to keep an eye on 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 is trading with a P/E ratio of 10.63, which compares to its industry's average of 18.36. 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 11.30.
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. CCU has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.74.
Finally, we should also recognize that CCU has a P/CF ratio of 17.55. 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 P/CF compares to its industry's average P/CF of 49.99. Over the past year, CCU's P/CF has been as high as 25.78 and as low as 16.48, with a median of 20.78.
Value investors will likely look at more than just these metrics, but the above data helps show that Compania Cervecerias Unidas is likely undervalued currently. And when considering the strength of its earnings outlook, CCU sticks out at as one of the market's strongest value stocks.