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Are Investors Undervaluing SUMCO CORP ADR (SUOPY) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 SUMCO CORP ADR (SUOPY - Free Report) . SUOPY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.92 right now. For comparison, its industry sports an average P/E of 18.78. SUOPY's Forward P/E has been as high as 21.09 and as low as 7.11, with a median of 15.28, all within the past year.

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. SUOPY has a P/S ratio of 1.68. This compares to its industry's average P/S of 2.9.

Value investors will likely look at more than just these metrics, but the above data helps show that SUMCO CORP ADR is likely undervalued currently. And when considering the strength of its earnings outlook, SUOPY sticks out at as one of the market's strongest value stocks.


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