Is Celanese (CE) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Celanese (CE). CE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.40, which compares to its industry's average of 20.08. CE's Forward P/E has been as high as 14.85 and as low as 9.25, with a median of 11.74, all within the past year.
Investors will also notice that CE has a PEG ratio of 0.38. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CE's industry has an average PEG of 0.82 right now. Over the past 52 weeks, CE's PEG has been as high as 3.33 and as low as 0.33, with a median of 0.58.
Another notable valuation metric for CE is its P/B ratio of 4.22. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 8.72. Over the past year, CE's P/B has been as high as 5.26 and as low as 3.50, with a median of 4.18.
These are only a few of the key metrics included in Celanese'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, CE looks like an impressive value stock at the moment.
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