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Are Investors Undervaluing CF Industries (CF) 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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is CF Industries (CF - Free Report) . CF is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 11.87, while its industry has an average P/E of 12.26. 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 14.29.
Investors should also note that CF holds a PEG ratio of 0.39. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CF's industry has an average PEG of 0.76 right now. Within the past year, CF's PEG has been as high as 2.67 and as low as 0.30, with a median of 0.67.
We should also highlight that CF has a P/B ratio of 1.84. 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. CF's current P/B looks attractive when compared to its industry's average P/B of 2.41. CF's P/B has been as high as 2.38 and as low as 1.59, with a median of 1.93, over the past year.
Finally, investors will want to recognize that CF has a P/CF ratio of 6.29. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CF's P/CF compares to its industry's average P/CF of 9.61. CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 6.93, all within the past year.
Investors could also keep in mind Yara International ASA (YARIY - Free Report) , another Fertilizers stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Furthermore, Yara International ASA holds a P/B ratio of 1.15 and its industry's price-to-book ratio is 2.41. YARIY's P/B has been as high as 1.36, as low as 0.87, with a median of 1.08 over the past 12 months.
These are only a few of the key metrics included in CF Industries and Yara International ASA strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CF and YARIY look like an impressive value stock at the moment.
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Are Investors Undervaluing CF Industries (CF) Right Now?
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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is CF Industries (CF - Free Report) . CF is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 11.87, while its industry has an average P/E of 12.26. 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 14.29.
Investors should also note that CF holds a PEG ratio of 0.39. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CF's industry has an average PEG of 0.76 right now. Within the past year, CF's PEG has been as high as 2.67 and as low as 0.30, with a median of 0.67.
We should also highlight that CF has a P/B ratio of 1.84. 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. CF's current P/B looks attractive when compared to its industry's average P/B of 2.41. CF's P/B has been as high as 2.38 and as low as 1.59, with a median of 1.93, over the past year.
Finally, investors will want to recognize that CF has a P/CF ratio of 6.29. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CF's P/CF compares to its industry's average P/CF of 9.61. CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 6.93, all within the past year.
Investors could also keep in mind Yara International ASA (YARIY - Free Report) , another Fertilizers stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Furthermore, Yara International ASA holds a P/B ratio of 1.15 and its industry's price-to-book ratio is 2.41. YARIY's P/B has been as high as 1.36, as low as 0.87, with a median of 1.08 over the past 12 months.
These are only a few of the key metrics included in CF Industries and Yara International ASA strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CF and YARIY look like an impressive value stock at the moment.