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Is Consolidated-Tomoka (CTO) a Great Value Stock 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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Consolidated-Tomoka (CTO - Free Report) is a stock many investors are watching right now. CTO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.52 right now. For comparison, its industry sports an average P/E of 22.23. Over the past year, CTO's Forward P/E has been as high as 10.66 and as low as 4.85, with a median of 8.59.

Finally, investors should note that CTO has a P/CF ratio of 7.32. 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. CTO's current P/CF looks attractive when compared to its industry's average P/CF of 18.03. Within the past 12 months, CTO's P/CF has been as high as 7.59 and as low as 4.25, with a median of 6.55.

These are just a handful of the figures considered in Consolidated-Tomoka's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CTO is an impressive value stock right now.


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