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Is WestRock (WRK) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is WestRock (WRK - Free Report) . WRK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another valuation metric that we should highlight is WRK's P/B ratio of 0.78. 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. WRK's current P/B looks attractive when compared to its industry's average P/B of 1.46. WRK's P/B has been as high as 1.27 and as low as 0.70, with a median of 0.84, over the past year.

Finally, our model also underscores that WRK has a P/CF ratio of 4.09. 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. WRK's current P/CF looks attractive when compared to its industry's average P/CF of 6.54. WRK's P/CF has been as high as 4.96 and as low as 2.89, with a median of 4.23, all within the past year.

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


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