Yahoo Finance Should Value Investors Buy OI Glass (OI) Stock?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 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 P/E ratio of 7.07 right now. For comparison, its industry sports an average P/E of 11.64. Over the past year, OI's Forward P/E has been as high as 9.92 and as low as 5.68, with a median of 7.53.
Investors will also notice that OI has a PEG ratio of 0.51. 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. OI's industry currently sports an average PEG of 0.84. Over the last 12 months, OI's PEG has been as high as 2.67 and as low as 0.48, with a median of 1.22.
We should also highlight that OI has a P/B ratio of 1.82. The P/B is a method of comparing a stock's market value to 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 2.09. OI's P/B has been as high as 2.50 and as low as 1.38, with a median of 1.79, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OI has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.52.
Finally, investors should note that OI has a P/CF ratio of 3.01. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.44. Over the past year, OI's P/CF has been as high as 3.56 and as low as 1.91, with a median of 2.51.
These figures are just a handful of the metrics value investors tend to look at, but they help show that OI Glass is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OI feels like a great value stock at the moment.
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O-I Glass, Inc. (OI) : Free Stock Analysis Report
