CF Industries (CF) - Undervalued or Overlooked? A Value Investors Perspective
Investing in the stock market can be a daunting task, especially with the constant fluctuations and unpredictable trends. However, with the help of Zacks Investment Research, investors can find winning stocks based on proven ranking systems that emphasize earnings estimates and estimate revisions.
One of the most popular ways to find great stocks in any market environment is through value investing. 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 its own Style Scores system to find stocks with specific traits that value investors will be interested in, particularly the "Value" category.
One company that value investors might want to take note of is CF Industries (CF). CF currently has a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 15.85, which compares favorably to its industry's average of 15.94. CF's Forward P/E has been as high as 16.16 and as low as 11.10, with a median of 14.14, all within the past year.
Investors should also recognize that CF has a P/B ratio of 2.33. The P/B ratio compares a stock's market value against its book value, which is defined as total assets minus total liabilities. CF's current P/B looks attractive when compared to its industry's average P/B of 2.52. CF's P/B has been as high as 2.38 and as low as 1.57, with a median of 1.88, over the past year.
Finally, our model underscores that CF has a P/CF ratio of 7.60. 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 17.19. Within the past 12 months, CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 7.04.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CF Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CF feels like a great value stock at the moment.
If you're interested in learning more about Zacks' recommendations and finding the best stocks for the next 30 days, you can download their free report on CF Industries Holdings, Inc. (CF) today. Additionally, Garrett Motion Inc. (GTX) is another stock that may be of interest to value investors based on its strong fundamentals and potential for growth.
In conclusion, Zacks Investment Research provides valuable insights and tools for investors looking to find winning stocks in any market environment. By focusing on proven ranking systems and metrics that value investors tend to look at, Zacks helps investors make informed decisions and potentially find undervalued stocks like CF Industries (CF).
