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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Cabot (CBT - Free Report) . CBT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.19 right now. For comparison, its industry sports an average P/E of 16.29. CBT's Forward P/E has been as high as 14.37 and as low as 10.30, with a median of 11.43, all within the past year.
CBT is also sporting a PEG ratio of 0.99. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CBT's PEG compares to its industry's average PEG of 1.04. Over the last 12 months, CBT's PEG has been as high as 2.66 and as low as 0.82, with a median of 2.22.
Finally, investors should note that CBT has a P/CF ratio of 9.49. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.92. Over the past year, CBT's P/CF has been as high as 9.49 and as low as 6.25, with a median of 8.38.
These are only a few of the key metrics included in Cabot's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CBT looks like an impressive value stock at the moment.
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Are Investors Undervaluing Cabot (CBT) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Cabot (CBT - Free Report) . CBT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.19 right now. For comparison, its industry sports an average P/E of 16.29. CBT's Forward P/E has been as high as 14.37 and as low as 10.30, with a median of 11.43, all within the past year.
CBT is also sporting a PEG ratio of 0.99. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CBT's PEG compares to its industry's average PEG of 1.04. Over the last 12 months, CBT's PEG has been as high as 2.66 and as low as 0.82, with a median of 2.22.
Finally, investors should note that CBT has a P/CF ratio of 9.49. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.92. Over the past year, CBT's P/CF has been as high as 9.49 and as low as 6.25, with a median of 8.38.
These are only a few of the key metrics included in Cabot's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CBT looks like an impressive value stock at the moment.