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Is Silgan Holdings (SLGN) Stock Undervalued Right Now?

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

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Silgan Holdings (SLGN - Free Report) . SLGN 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 11.69. This compares to its industry's average Forward P/E of 19.15. Over the past year, SLGN's Forward P/E has been as high as 14.41 and as low as 10.79, with a median of 13.29.

Investors should also note that SLGN holds a PEG ratio of 1.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SLGN's PEG compares to its industry's average PEG of 2.81. Within the past year, SLGN's PEG has been as high as 2.31 and as low as 1.48, with a median of 1.74.

Investors should also recognize that SLGN has a P/B ratio of 2.97. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. SLGN's current P/B looks attractive when compared to its industry's average P/B of 5.34. Over the past year, SLGN's P/B has been as high as 3.78 and as low as 2.74, with a median of 3.56.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SLGN has a P/S ratio of 0.72. This compares to its industry's average P/S of 1.26.

Finally, investors should note that SLGN has a P/CF ratio of 7.57. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SLGN's P/CF compares to its industry's average P/CF of 14.38. Over the past year, SLGN's P/CF has been as high as 8.99 and as low as 6.99, with a median of 8.32.

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


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