Should Value Investors Buy Chemours (CC) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Chemours (CC) is a stock many investors are watching right now. CC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.25. This compares to its industry's average Forward P/E of 10.38. CC's Forward P/E has been as high as 9.56 and as low as 5.02, with a median of 7.45, all within the past year.
Investors will also notice that CC has a PEG ratio of 0.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CC's PEG compares to its industry's average PEG of 0.69. Within the past year, CC's PEG has been as high as 0.69 and as low as 0.19, with a median of 0.30.
Finally, we should also recognize that CC has a P/CF ratio of 4.71. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.70. Within the past 12 months, CC's P/CF has been as high as 10.07 and as low as 4.03, with a median of 6.36.
These are just a handful of the figures considered in Chemours'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 CC is an impressive value stock right now.
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