Yahoo Finance Is CI Financial (CIXXF) Stock Undervalued Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 company to watch right now is CI Financial (CIXXF). CIXXF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
CIXXF is also sporting a PEG ratio of 0.54. 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. CIXXF's PEG compares to its industry's average PEG of 0.77. Within the past year, CIXXF's PEG has been as high as 0.67 and as low as 0.42, with a median of 0.57.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CIXXF has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.65.
Finally, we should also recognize that CIXXF has a P/CF ratio of 13.10. 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. CIXXF's P/CF compares to its industry's average P/CF of 13.67. Over the past year, CIXXF's P/CF has been as high as 14.14 and as low as 6.14, with a median of 12.11.
Value investors will likely look at more than just these metrics, but the above data helps show that CI Financial is likely undervalued currently. And when considering the strength of its earnings outlook, CIXXF sticks out at as one of the market's strongest value stocks.
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CI Financial Corp. (CIXXF) : Free Stock Analysis Report
