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Is Cott (PRMW) Stock Undervalued 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.

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

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 stock to keep an eye on is Cott (PRMW - Free Report) . PRMW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.75. This compares to its industry's average Forward P/E of 20.04. Over the past 52 weeks, PRMW's Forward P/E has been as high as 51.62 and as low as 14.75, with a median of 32.55.

Finally, we should also recognize that PRMW has a P/CF ratio of 4.82. 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 17.15. Within the past 12 months, PRMW's P/CF has been as high as 10.88 and as low as 3.51, with a median of 9.38.

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


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