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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company to watch right now is Colfax . CFX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.16 right now. For comparison, its industry sports an average P/E of 16.41. Over the last 12 months, CFX's Forward P/E has been as high as 19 and as low as 7.24, with a median of 14.08.
Investors will also notice that CFX has a PEG ratio of 0.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CFX's PEG compares to its industry's average PEG of 1.29. Over the past 52 weeks, CFX's PEG has been as high as 1.55 and as low as 0.51, with a median of 1.09.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CFX has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.47.
Finally, we should also recognize that CFX has a P/CF ratio of 6.56. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CFX's current P/CF looks attractive when compared to its industry's average P/CF of 14.38. CFX's P/CF has been as high as 10.91 and as low as 5.26, with a median of 8.54, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Colfax is likely undervalued currently. And when considering the strength of its earnings outlook, CFX sticks out at as one of the market's strongest value stocks.
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Is Colfax (CFX) Stock Undervalued Right Now?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company to watch right now is Colfax . CFX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.16 right now. For comparison, its industry sports an average P/E of 16.41. Over the last 12 months, CFX's Forward P/E has been as high as 19 and as low as 7.24, with a median of 14.08.
Investors will also notice that CFX has a PEG ratio of 0.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CFX's PEG compares to its industry's average PEG of 1.29. Over the past 52 weeks, CFX's PEG has been as high as 1.55 and as low as 0.51, with a median of 1.09.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CFX has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.47.
Finally, we should also recognize that CFX has a P/CF ratio of 6.56. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CFX's current P/CF looks attractive when compared to its industry's average P/CF of 14.38. CFX's P/CF has been as high as 10.91 and as low as 5.26, with a median of 8.54, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Colfax is likely undervalued currently. And when considering the strength of its earnings outlook, CFX sticks out at as one of the market's strongest value stocks.