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Should Value Investors Buy CBD (CBD) Stock?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

CBD is a stock many investors are watching right now. CBD is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Investors will also notice that CBD has a PEG ratio of 0.96. 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. CBD's industry has an average PEG of 2.73 right now. CBD's PEG has been as high as 1.63 and as low as 0.87, with a median of 1.01, all within the past year.

We should also highlight that CBD has a P/B ratio of 1.37. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. CBD's current P/B looks attractive when compared to its industry's average P/B of 3.03. Over the past year, CBD's P/B has been as high as 1.67 and as low as 1.23, with a median of 1.41.

Finally, investors will want to recognize that CBD has a P/CF ratio of 10.29. 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. CBD's P/CF compares to its industry's average P/CF of 11.72. Over the past year, CBD's P/CF has been as high as 22.59 and as low as 9.53, with a median of 13.05.

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