Back to top

Should Value Investors Buy Cooper-Standard (CPS) Stock?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Cooper-Standard (CPS - Free Report) . CPS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.04 right now. For comparison, its industry sports an average P/E of 10.80. Over the past 52 weeks, CPS's Forward P/E has been as high as 12.30 and as low as 9.78, with a median of 10.88.

We should also highlight that CPS has a P/B ratio of 2.36. 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. CPS's current P/B looks attractive when compared to its industry's average P/B of 2.71. CPS's P/B has been as high as 2.91 and as low as 2.31, with a median of 2.52, over the past year.

Finally, we should also recognize that CPS has a P/CF ratio of 7.25. 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. This stock's P/CF looks attractive against its industry's average P/CF of 7.40. Within the past 12 months, CPS's P/CF has been as high as 9.04 and as low as 7.21, with a median of 8.26.

Value investors will likely look at more than just these metrics, but the above data helps show that Cooper-Standard is likely undervalued currently. And when considering the strength of its earnings outlook, CPS sticks out at as one of the market's strongest value stocks.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Cooper-Standard Holdings Inc. (CPS) - free report >>

More from Zacks Tale of the Tape

You May Like