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Is Consolidated-Tomoka (CTO) Stock Undervalued Right Now?

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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.

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.

One company to watch right now is Consolidated-Tomoka (CTO - Free Report) . CTO 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 8.34, which compares to its industry's average of 19.61. Over the past 52 weeks, CTO's Forward P/E has been as high as 9.90 and as low as 4.85, with a median of 7.11.

Finally, our model also underscores that CTO has a P/CF ratio of 6.26. 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. CTO's current P/CF looks attractive when compared to its industry's average P/CF of 23.47. Over the past 52 weeks, CTO's P/CF has been as high as 6.55 and as low as 4.25, with a median of 5.58.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Consolidated-Tomoka is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CTO feels like a great value stock at the moment.




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