Yahoo Finance Are Investors Undervaluing Constellium (CSTM) Right Now?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Constellium (CSTM). CSTM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.45, which compares to its industry's average of 13.62. Over the past 52 weeks, CSTM's Forward P/E has been as high as 14.15 and as low as 5.63, with a median of 8.41.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CSTM has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.36.
Finally, our model also underscores that CSTM has a P/CF ratio of 3.34. 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. CSTM's current P/CF looks attractive when compared to its industry's average P/CF of 10.46. CSTM's P/CF has been as high as 4.87 and as low as 2.32, with a median of 3.32, all within the past year.
Another great Metal Products - Distribution stock you could consider is Mitsui & Co. (MITSY), which is a # 1 (Strong Buy) stock with a Value Score of A.
Mitsui & Co. is trading at a forward earnings multiple of 6.84 at the moment, with a PEG ratio of 6. This compares to its industry's average P/E of 13.62 and average PEG ratio of 1.11.
MITSY's price-to-earnings ratio has been as high as 7.47 and as low as 4.51, with a median of 5.86, while its PEG ratio has been as high as 6 and as low as 0.23, with a median of 0.30, all within the past year.
Mitsui & Co. sports a P/B ratio of 1.05 as well; this compares to its industry's price-to-book ratio of 1.88. In the past 52 weeks, MITSY's P/B has been as high as 1.06, as low as 0.69, with a median of 0.80.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Constellium and Mitsui & Co. are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CSTM and MITSY feels like a great value stock at the moment.
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Constellium SE (CSTM) : Free Stock Analysis Report
Mitsui & Co. (MITSY) : Free Stock Analysis Report
