Should Value Investors Buy Chemours (CC) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Neverthe...
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Chemours (CC). CC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 8.63. This compares to its industry's average Forward P/E of 12.32. CC's Forward P/E has been as high as 12.18 and as low as 8.10, with a median of 10.26, all within the past year.
We also note that CC holds a PEG ratio of 0.29. 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. CC's PEG compares to its industry's average PEG of 0.57. CC's PEG has been as high as 0.45 and as low as 0.27, with a median of 0.35, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CC has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.
Finally, our model also underscores that CC has a P/CF ratio of 9.69. 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. CC's P/CF compares to its industry's average P/CF of 10.88. Within the past 12 months, CC's P/CF has been as high as 22.03 and as low as 7.22, with a median of 10.07.
These are only a few of the key metrics included in Chemours'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, CC looks like an impressive value stock at the moment.
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