We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing CF Industries (CF) Right Now?
Read MoreHide Full Article
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 CF Industries (CF - Free Report) . CF is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 15.85, which compares to its industry's average of 15.94. CF's Forward P/E has been as high as 16.16 and as low as 11.10, with a median of 14.14, all within the past year.
Investors should also recognize that CF has a P/B ratio of 2.33. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CF's current P/B looks attractive when compared to its industry's average P/B of 2.52. CF's P/B has been as high as 2.38 and as low as 1.57, with a median of 1.88, over the past year.
Finally, our model also underscores that CF has a P/CF ratio of 7.60. 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 17.19. Within the past 12 months, CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 7.04.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CF Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CF feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing CF Industries (CF) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 CF Industries (CF - Free Report) . CF is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 15.85, which compares to its industry's average of 15.94. CF's Forward P/E has been as high as 16.16 and as low as 11.10, with a median of 14.14, all within the past year.
Investors should also recognize that CF has a P/B ratio of 2.33. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CF's current P/B looks attractive when compared to its industry's average P/B of 2.52. CF's P/B has been as high as 2.38 and as low as 1.57, with a median of 1.88, over the past year.
Finally, our model also underscores that CF has a P/CF ratio of 7.60. 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 17.19. Within the past 12 months, CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 7.04.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CF Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CF feels like a great value stock at the moment.