We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Coca-Cola FEMSA (KOF) Stock?
Read MoreHide Full Article
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is Coca-Cola FEMSA (KOF - Free Report) . KOF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 16.94. This compares to its industry's average Forward P/E of 23.13. Over the past 52 weeks, KOF's Forward P/E has been as high as 20.91 and as low as 15.90, with a median of 17.93.
Investors should also note that KOF holds a PEG ratio of 1.72. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. KOF's industry has an average PEG of 2.49 right now. Over the past 52 weeks, KOF's PEG has been as high as 2.05 and as low as 1.61, with a median of 1.86.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KOF has a P/S ratio of 1.32. This compares to its industry's average P/S of 1.69.
Finally, investors will want to recognize that KOF has a P/CF ratio of 10.22. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. KOF's P/CF compares to its industry's average P/CF of 22.98. Within the past 12 months, KOF's P/CF has been as high as 11.74 and as low as -67.50, with a median of 10.39.
Value investors will likely look at more than just these metrics, but the above data helps show that Coca-Cola FEMSA is likely undervalued currently. And when considering the strength of its earnings outlook, KOF sticks out at as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy Coca-Cola FEMSA (KOF) Stock?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is Coca-Cola FEMSA (KOF - Free Report) . KOF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 16.94. This compares to its industry's average Forward P/E of 23.13. Over the past 52 weeks, KOF's Forward P/E has been as high as 20.91 and as low as 15.90, with a median of 17.93.
Investors should also note that KOF holds a PEG ratio of 1.72. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. KOF's industry has an average PEG of 2.49 right now. Over the past 52 weeks, KOF's PEG has been as high as 2.05 and as low as 1.61, with a median of 1.86.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KOF has a P/S ratio of 1.32. This compares to its industry's average P/S of 1.69.
Finally, investors will want to recognize that KOF has a P/CF ratio of 10.22. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. KOF's P/CF compares to its industry's average P/CF of 22.98. Within the past 12 months, KOF's P/CF has been as high as 11.74 and as low as -67.50, with a median of 10.39.
Value investors will likely look at more than just these metrics, but the above data helps show that Coca-Cola FEMSA is likely undervalued currently. And when considering the strength of its earnings outlook, KOF sticks out at as one of the market's strongest value stocks.