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Are Investors Undervaluing Sunoco (SUN) 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.
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.
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.
Sunoco (SUN - Free Report) is a stock many investors are watching right now. SUN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.51, while its industry has an average P/E of 12.22. Over the last 12 months, SUN's Forward P/E has been as high as 16.32 and as low as 9.34, with a median of 12.12.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SUN has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.31.
Finally, investors will want to recognize that SUN has a P/CF ratio of 8. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.29. Over the past 52 weeks, SUN's P/CF has been as high as 9.17 and as low as 5.35, with a median of 6.72.
Value investors will likely look at more than just these metrics, but the above data helps show that Sunoco is likely undervalued currently. And when considering the strength of its earnings outlook, SUN sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Sunoco (SUN) 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.
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.
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.
Sunoco (SUN - Free Report) is a stock many investors are watching right now. SUN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.51, while its industry has an average P/E of 12.22. Over the last 12 months, SUN's Forward P/E has been as high as 16.32 and as low as 9.34, with a median of 12.12.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SUN has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.31.
Finally, investors will want to recognize that SUN has a P/CF ratio of 8. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.29. Over the past 52 weeks, SUN's P/CF has been as high as 9.17 and as low as 5.35, with a median of 6.72.
Value investors will likely look at more than just these metrics, but the above data helps show that Sunoco is likely undervalued currently. And when considering the strength of its earnings outlook, SUN sticks out at as one of the market's strongest value stocks.