Are Investors Undervaluing Cornerstone Building (CNR) 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, 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Cornerstone Building (CNR). CNR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.41. This compares to its industry's average Forward P/E of 18.64. Over the past year, CNR's Forward P/E has been as high as 62.72 and as low as 6.17, with a median of 13.94.
Investors should also recognize that CNR has a P/B ratio of 4.03. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. CNR's current P/B looks attractive when compared to its industry's average P/B of 4.26. CNR's P/B has been as high as 5.36 and as low as 2.28, with a median of 3.77, over the past year.
These are only a few of the key metrics included in Cornerstone Building'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, CNR looks like an impressive value stock at the moment.
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