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Should Value Investors Buy Constellium (CSTM) Stock?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Constellium (CSTM - Free Report) . CSTM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.39 right now. For comparison, its industry sports an average P/E of 7.75. Over the last 12 months, CSTM's Forward P/E has been as high as 14.60 and as low as 3.21, with a median of 10.54.
Finally, our model also underscores that CSTM has a P/CF ratio of 2.88. 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. CSTM's P/CF compares to its industry's average P/CF of 7.86. Over the past 52 weeks, CSTM's P/CF has been as high as 14.02 and as low as 2.25, with a median of 9.23.
Value investors will likely look at more than just these metrics, but the above data helps show that Constellium is likely undervalued currently. And when considering the strength of its earnings outlook, CSTM sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Constellium (CSTM) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Constellium (CSTM - Free Report) . CSTM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.39 right now. For comparison, its industry sports an average P/E of 7.75. Over the last 12 months, CSTM's Forward P/E has been as high as 14.60 and as low as 3.21, with a median of 10.54.
Finally, our model also underscores that CSTM has a P/CF ratio of 2.88. 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. CSTM's P/CF compares to its industry's average P/CF of 7.86. Over the past 52 weeks, CSTM's P/CF has been as high as 14.02 and as low as 2.25, with a median of 9.23.
Value investors will likely look at more than just these metrics, but the above data helps show that Constellium is likely undervalued currently. And when considering the strength of its earnings outlook, CSTM sticks out at as one of the market's strongest value stocks.