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Is Cosan (CZZ) Stock Undervalued Right Now?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Cosan is a stock many investors are watching right now. CZZ is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 15.36, which compares to its industry's average of 17.93. Over the past 52 weeks, CZZ's Forward P/E has been as high as 19.16 and as low as 2.82, with a median of 12.66.

Another valuation metric that we should highlight is CZZ's P/B ratio of 0.83. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.27. CZZ's P/B has been as high as 0.83 and as low as 0.34, with a median of 0.51, over the past year.

Finally, investors should note that CZZ has a P/CF ratio of 3.88. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.72. Over the past year, CZZ's P/CF has been as high as 3.88 and as low as 1.81, with a median of 2.88.

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

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