Is Canon (CAJ) 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...
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.
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.
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 Canon (CAJ). CAJ is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.84, which compares to its industry's average of 12.88. Over the past year, CAJ's Forward P/E has been as high as 25.97 and as low as 12.56, with a median of 20.14.
Investors should also note that CAJ holds a PEG ratio of 12.84. 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. CAJ's industry currently sports an average PEG of 12.88. Over the last 12 months, CAJ's PEG has been as high as 25.97 and as low as 12.56, with a median of 20.14.
Finally, investors will want to recognize that CAJ has a P/CF ratio of 6.95. 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. CAJ's current P/CF looks attractive when compared to its industry's average P/CF of 7.67. CAJ's P/CF has been as high as 8.65 and as low as 6.19, with a median of 7.62, all within the past year.
These are only a few of the key metrics included in Canon'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, CAJ looks like an impressive value stock at the moment.
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Canon, Inc. (CAJ): Free Stock Analysis Report
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