Back to top

Is SunCoke Energy (SXC) Stock Undervalued Right Now?

Read MoreHide Full Article

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 SunCoke Energy (SXC - Free Report) . SXC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

We should also highlight that SXC has a P/B ratio of 0.95. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SXC's current P/B looks attractive when compared to its industry's average P/B of 1.36. Within the past 52 weeks, SXC's P/B has been as high as 1.58 and as low as 0.90, with a median of 1.11.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SXC has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.65.

Finally, we should also recognize that SXC has a P/CF ratio of 2.26. 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 2.89. SXC's P/CF has been as high as 6.05 and as low as 2.15, with a median of 2.81, all within the past year.

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




In-Depth Zacks Research for the Tickers Above


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


SunCoke Energy, Inc. (SXC) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in