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Is Celanese (CE) a Great Value Stock 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, 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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Celanese (CE - Free Report) is a stock many investors are watching right now. CE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.51, which compares to its industry's average of 15.99. Over the past 52 weeks, CE's Forward P/E has been as high as 14.54 and as low as 8.51, with a median of 11.83.

We also note that CE holds a PEG ratio of 0.85. 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. CE's industry has an average PEG of 1.44 right now. CE's PEG has been as high as 1.62 and as low as 0.85, with a median of 1.32, all within the past year.

Another valuation metric that we should highlight is CE's P/B ratio of 3.33. 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. This company's current P/B looks solid when compared to its industry's average P/B of 6.53. Over the past 12 months, CE's P/B has been as high as 4.69 and as low as 3.33, with a median of 4.17.

Finally, investors will want to recognize that CE has a P/CF ratio of 7.71. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 18.37. Over the past 52 weeks, CE's P/CF has been as high as 13.48 and as low as 7.71, with a median of 11.60.

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


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