Yahoo Finance Are Investors Undervaluing OI Glass (OI) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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 OI Glass (OI). OI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.80, which compares to its industry's average of 17.42. Over the last 12 months, OI's Forward P/E has been as high as 9.92 and as low as 5.68, with a median of 7.01.
OI is also sporting a PEG ratio of 1.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OI's industry has an average PEG of 2.44 right now. Within the past year, OI's PEG has been as high as 2.67 and as low as 0.88, with a median of 1.22.
We should also highlight that OI has a P/B ratio of 2.31. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. OI's current P/B looks attractive when compared to its industry's average P/B of 2.75. OI's P/B has been as high as 2.57 and as low as 1.38, with a median of 1.80, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OI has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.61.
Finally, our model also underscores that OI has a P/CF ratio of 3.45. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. OI's current P/CF looks attractive when compared to its industry's average P/CF of 7.84. Within the past 12 months, OI's P/CF has been as high as 3.56 and as low as 1.91, with a median of 2.51.
These are only a few of the key metrics included in OI Glass'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, OI looks like an impressive value stock at the moment.
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
O-I Glass, Inc. (OI) : Free Stock Analysis Report
