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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.
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.
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.
Comp En De Mn Cemig (CIG) is a stock many investors are watching right now. CIG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.67. This compares to its industry's average Forward P/E of 16.41. CIG's Forward P/E has been as high as 8.97 and as low as 5.07, with a median of 6.52, all within the past year.
We should also highlight that CIG has a P/B ratio of 1.11. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.72. CIG's P/B has been as high as 1.23 and as low as 0.93, with a median of 1.06, 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. CIG has a P/S ratio of 0.75. This compares to its industry's average P/S of 2.07.
Finally, investors should note that CIG has a P/CF ratio of 3.93. 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. CIG's P/CF compares to its industry's average P/CF of 12.70. CIG's P/CF has been as high as 4.59 and as low as 3.42, with a median of 3.87, all within the past year.
These are just a handful of the figures considered in Comp En De Mn Cemig'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 CIG is an impressive value stock right now.