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Is CPB (CPF) Stock Undervalued 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is CPB (CPF - Free Report) . CPF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.97. This compares to its industry's average Forward P/E of 10. Over the past year, CPF's Forward P/E has been as high as 10.49 and as low as 6.38, with a median of 8.78.

Another valuation metric that we should highlight is CPF's P/B ratio of 1.13. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.17. Over the past 12 months, CPF's P/B has been as high as 1.17 and as low as 0.79, with a median of 1.01.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. CPF has a P/S ratio of 1.7. This compares to its industry's average P/S of 1.73.

Finally, our model also underscores that CPF has a P/CF ratio of 8.70. 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. CPF's P/CF compares to its industry's average P/CF of 9. Over the past year, CPF's P/CF has been as high as 8.70 and as low as 4.47, with a median of 6.28.

These figures are just a handful of the metrics value investors tend to look at, but they help show that CPB is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CPF feels like a great value stock at the moment.


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