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Should Value Investors Buy SFL Corporation (SFL) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 SFL Corporation (SFL - Free Report) . SFL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.69, which compares to its industry's average of 22.86. Over the past year, SFL's Forward P/E has been as high as 17.57 and as low as 7.99, with a median of 14.74.

Finally, our model also underscores that SFL has a P/CF ratio of 4.87. 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. SFL's P/CF compares to its industry's average P/CF of 7.95. Over the past year, SFL's P/CF has been as high as 8.29 and as low as 3.32, with a median of 6.66.

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


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