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Should Value Investors Buy Clipper Realty (CLPR) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 to watch right now is Clipper Realty (CLPR). CLPR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.63, while its industry has an average P/E of 16.66. CLPR's Forward P/E has been as high as 14.24 and as low as 5.87, with a median of 9.37, all within the past year.

Finally, our model also underscores that CLPR has a P/CF ratio of 9.36. 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. CLPR's current P/CF looks attractive when compared to its industry's average P/CF of 16.62. Over the past 52 weeks, CLPR's P/CF has been as high as 10.74 and as low as 5.22, with a median of 7.83.

These are only a few of the key metrics included in Clipper Realty'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, CLPR looks like an impressive value stock at the moment.

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