Is Olin (OLN) a Great Value Stock 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. Nevertheless, we are always paying attention to...
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 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.
Olin (OLN) is a stock many investors are watching right now. OLN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.28, while its industry has an average P/E of 12.21. OLN's Forward P/E has been as high as 1,647.71 and as low as -5,005.03, with a median of 9.38, all within the past year.
Finally, our model also underscores that OLN has a P/CF ratio of 7.67. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.03. OLN's P/CF has been as high as 21.07 and as low as 6.08, with a median of 12.04, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Olin is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OLN feels like a great value stock at the moment.
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