Yahoo Finance Are Investors Undervaluing Itochu (ITOCY) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
One company to watch right now is Itochu (ITOCY). ITOCY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.52, which compares to its industry's average of 15.59. Over the last 12 months, ITOCY's Forward P/E has been as high as 24.17 and as low as 10.63, with a median of 20.37.
Finally, investors will want to recognize that ITOCY has a P/CF ratio of 8.15. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 18.40. Over the past 52 weeks, ITOCY's P/CF has been as high as 8.51 and as low as 5.63, with a median of 6.84.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Itochu is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ITOCY feels like a great value stock at the moment.
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Itochu Corp. (ITOCY) : Free Stock Analysis Report
