Are Investors Undervaluing Chemours (CC) Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Chemours (CC) is a stock many investors are watching right now. CC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.90. This compares to its industry's average Forward P/E of 11.63. Over the last 12 months, CC's Forward P/E has been as high as 12.18 and as low as 7.90, with a median of 10.15.
Investors will also notice that CC has a PEG ratio of 0.26. 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 industry currently sports an average PEG of 0.53. CC's PEG has been as high as 0.45 and as low as 0.26, with a median of 0.34, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CC has a P/S ratio of 0.87. This compares to its industry's average P/S of 0.97.
Finally, we should also recognize that CC has a P/CF ratio of 8.89. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.36. Over the past year, CC's P/CF has been as high as 22.03 and as low as 7.22, with a median of 9.82.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Chemours is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CC feels like a great value stock at the moment.
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