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.
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 value investors might notice is Cinemark (CNK). CNK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 16.05. This compares to its industry's average Forward P/E of 20.22. Over the last 12 months, CNK's Forward P/E has been as high as 20.11 and as low as 10.66, with a median of 16.09.
Finally, investors should note that CNK has a P/CF ratio of 14.17. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CNK's P/CF compares to its industry's average P/CF of 16.65. Over the past 52 weeks, CNK's P/CF has been as high as 14.64 and as low as 4.31, with a median of 7.34.
These are only a few of the key metrics included in Cinemark'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, CNK looks like an impressive value stock at the moment.
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