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Are Investors Undervaluing Crown Holdings (CCK) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Crown Holdings (CCK - Free Report) . CCK is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.1, while its industry has an average P/E of 12.52. Over the last 12 months, CCK's Forward P/E has been as high as 14.81 and as low as 10.99, with a median of 12.98.

Investors should also recognize that CCK has a P/B ratio of 3.27. 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. CCK's current P/B looks attractive when compared to its industry's average P/B of 7.05. Within the past 52 weeks, CCK's P/B has been as high as 3.88 and as low as 2.89, with a median of 3.49.

Finally, we should also recognize that CCK has a P/CF ratio of 10.98. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.69. Within the past 12 months, CCK's P/CF has been as high as 20.49 and as low as 9.25, with a median of 11.97.

These are only a few of the key metrics included in Crown Holdings'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, CCK looks like an impressive value stock at the moment.


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