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Should Value Investors Buy CF Industries (CF) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on 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 P/E ratio of 14.41 right now. For comparison, its industry sports an average P/E of 15.44. Over the past 52 weeks, CF's Forward P/E has been as high as 16.16 and as low as 11.10, with a median of 14.30.
Finally, we should also recognize that CF has a P/CF ratio of 7.01. 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. CF's current P/CF looks attractive when compared to its industry's average P/CF of 16.77. Over the past 52 weeks, CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 7.14.
These are just a handful of the figures considered in CF Industries's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CF is an impressive value stock right now.
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Should Value Investors Buy CF Industries (CF) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on 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 P/E ratio of 14.41 right now. For comparison, its industry sports an average P/E of 15.44. Over the past 52 weeks, CF's Forward P/E has been as high as 16.16 and as low as 11.10, with a median of 14.30.
Finally, we should also recognize that CF has a P/CF ratio of 7.01. 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. CF's current P/CF looks attractive when compared to its industry's average P/CF of 16.77. Over the past 52 weeks, CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 7.14.
These are just a handful of the figures considered in CF Industries's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CF is an impressive value stock right now.