Yahoo Finance Are Investors Undervaluing Comp En De Mn Cemig (CIG) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Comp En De Mn Cemig (CIG). CIG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.66, which compares to its industry's average of 15.47. Over the past year, CIG's Forward P/E has been as high as 8.97 and as low as 5.07, with a median of 6.47.
We should also highlight that CIG has a P/B ratio of 1.14. 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 solid versus its industry's average P/B of 2.46. Over the past 12 months, CIG's P/B has been as high as 1.23 and as low as 0.93, with a median of 1.05.
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. CIG has a P/S ratio of 0.79. This compares to its industry's average P/S of 2.07.
Finally, we should also recognize that CIG has a P/CF ratio of 4.01. 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. CIG's current P/CF looks attractive when compared to its industry's average P/CF of 12.32. CIG's P/CF has been as high as 4.66 and as low as 3.42, with a median of 3.86, all within the past year.
These are just a handful of the figures considered in Comp En De Mn Cemig's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CIG is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Comp En De Mn Cemig ADS (CIG) : Free Stock Analysis Report
