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Should Value Investors Buy Continental (CTTAY) Stock?
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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is Continental (CTTAY - Free Report) . CTTAY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.99 right now. For comparison, its industry sports an average P/E of 14.36. Over the last 12 months, CTTAY's Forward P/E has been as high as 12.07 and as low as 6.21, with a median of 7.22.
Another notable valuation metric for CTTAY is its P/B ratio of 0.85. The P/B ratio is used to compare a stock's market value with 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 1.87. Over the past 12 months, CTTAY's P/B has been as high as 1.11 and as low as 0.72, with a median of 0.86.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CTTAY has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.74.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Continental is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CTTAY feels like a great value stock at the moment.
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Should Value Investors Buy Continental (CTTAY) Stock?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is Continental (CTTAY - Free Report) . CTTAY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.99 right now. For comparison, its industry sports an average P/E of 14.36. Over the last 12 months, CTTAY's Forward P/E has been as high as 12.07 and as low as 6.21, with a median of 7.22.
Another notable valuation metric for CTTAY is its P/B ratio of 0.85. The P/B ratio is used to compare a stock's market value with 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 1.87. Over the past 12 months, CTTAY's P/B has been as high as 1.11 and as low as 0.72, with a median of 0.86.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CTTAY has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.74.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Continental is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CTTAY feels like a great value stock at the moment.