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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is CF Industries (CF - Free Report) . CF is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.87, which compares to its industry's average of 12.54. CF's Forward P/E has been as high as 16.16 and as low as 11.10, with a median of 14.29, all within the past year.
We 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 PEG compares to its industry's average PEG of 0.78. Over the last 12 months, CF's PEG has been as high as 2.67 and as low as 0.30, with a median of 0.67.
Another notable valuation metric for CF is its P/B ratio of 1.84. 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 stock's P/B looks attractive against its industry's average P/B of 2.40. Within the past 52 weeks, CF's P/B has been as high as 2.38 and as low as 1.59, with a median of 1.93.
Finally, investors should note that CF has a P/CF ratio of 6.29. 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 9.60. Over the past year, CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 6.93.
Value investors will likely look at more than just these metrics, but the above data helps show that CF Industries is likely undervalued currently. And when considering the strength of its earnings outlook, CF sticks out as one of the market's strongest value stocks.
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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is CF Industries (CF - Free Report) . CF is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.87, which compares to its industry's average of 12.54. CF's Forward P/E has been as high as 16.16 and as low as 11.10, with a median of 14.29, all within the past year.
We 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 PEG compares to its industry's average PEG of 0.78. Over the last 12 months, CF's PEG has been as high as 2.67 and as low as 0.30, with a median of 0.67.
Another notable valuation metric for CF is its P/B ratio of 1.84. 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 stock's P/B looks attractive against its industry's average P/B of 2.40. Within the past 52 weeks, CF's P/B has been as high as 2.38 and as low as 1.59, with a median of 1.93.
Finally, investors should note that CF has a P/CF ratio of 6.29. 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 9.60. Over the past year, CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 6.93.
Value investors will likely look at more than just these metrics, but the above data helps show that CF Industries is likely undervalued currently. And when considering the strength of its earnings outlook, CF sticks out as one of the market's strongest value stocks.