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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Sunoco LP (SUN - Free Report) . SUN 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 12.63, which compares to its industry's average of 17. Over the past year, SUN's Forward P/E has been as high as 31.20 and as low as 9.92, with a median of 12.63.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SUN has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.56.
Finally, investors should note that SUN has a P/CF ratio of 6.76. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SUN's current P/CF looks attractive when compared to its industry's average P/CF of 8.82. SUN's P/CF has been as high as 7.95 and as low as -136.49, with a median of 6.50, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Sunoco LP is likely undervalued currently. And when considering the strength of its earnings outlook, SUN sticks out at as one of the market's strongest value stocks.
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Is Sunoco LP (SUN) Stock Undervalued Right Now?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Sunoco LP (SUN - Free Report) . SUN 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 12.63, which compares to its industry's average of 17. Over the past year, SUN's Forward P/E has been as high as 31.20 and as low as 9.92, with a median of 12.63.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SUN has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.56.
Finally, investors should note that SUN has a P/CF ratio of 6.76. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SUN's current P/CF looks attractive when compared to its industry's average P/CF of 8.82. SUN's P/CF has been as high as 7.95 and as low as -136.49, with a median of 6.50, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Sunoco LP is likely undervalued currently. And when considering the strength of its earnings outlook, SUN sticks out at as one of the market's strongest value stocks.