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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is OI Glass (OI - Free Report) . OI is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.87 right now. For comparison, its industry sports an average P/E of 9.33. OI's Forward P/E has been as high as 14.36 and as low as 5.80, with a median of 8.04, all within the past year.
We also note that OI holds a PEG ratio of 0.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OI's PEG compares to its industry's average PEG of 0.27. OI's PEG has been as high as 1.32 and as low as 0.18, with a median of 0.25, all within the past year.
We should also highlight that OI has a P/B ratio of 1.78. 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 2.14. OI's P/B has been as high as 1.96 and as low as 1.04, with a median of 1.37, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OI has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.42.
Finally, we should also recognize that OI has a P/CF ratio of 7.50. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. OI's P/CF compares to its industry's average P/CF of 8.91. Over the past 52 weeks, OI's P/CF has been as high as 25.52 and as low as 4.02, with a median of 7.59.
Value investors will likely look at more than just these metrics, but the above data helps show that OI Glass is likely undervalued currently. And when considering the strength of its earnings outlook, OI sticks out as one of the market's strongest value stocks.
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Is OI Glass (OI) a Great Value Stock 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is OI Glass (OI - Free Report) . OI is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.87 right now. For comparison, its industry sports an average P/E of 9.33. OI's Forward P/E has been as high as 14.36 and as low as 5.80, with a median of 8.04, all within the past year.
We also note that OI holds a PEG ratio of 0.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OI's PEG compares to its industry's average PEG of 0.27. OI's PEG has been as high as 1.32 and as low as 0.18, with a median of 0.25, all within the past year.
We should also highlight that OI has a P/B ratio of 1.78. 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 2.14. OI's P/B has been as high as 1.96 and as low as 1.04, with a median of 1.37, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OI has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.42.
Finally, we should also recognize that OI has a P/CF ratio of 7.50. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. OI's P/CF compares to its industry's average P/CF of 8.91. Over the past 52 weeks, OI's P/CF has been as high as 25.52 and as low as 4.02, with a median of 7.59.
Value investors will likely look at more than just these metrics, but the above data helps show that OI Glass is likely undervalued currently. And when considering the strength of its earnings outlook, OI sticks out as one of the market's strongest value stocks.