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Is CF Industries (CF) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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 to watch right now 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 a P/E ratio of 11.87, which compares to its industry's average of 14.43. Over the past year, 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 popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CF's PEG compares to its industry's average PEG of 0.74. CF's PEG has been as high as 2.67 and as low as 0.30, with a median of 0.67, all within the past year.

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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