Yahoo Finance Are Investors Undervaluing Sumitomo (SSUMY) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Sumitomo (SSUMY). SSUMY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.92, which compares to its industry's average of 19.36. Over the past year, SSUMY's Forward P/E has been as high as 10.61 and as low as 6.99, with a median of 8.33.
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. SSUMY has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.22.
Finally, investors will want to recognize that SSUMY has a P/CF ratio of 7.52. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 27.77. Over the past year, SSUMY's P/CF has been as high as 8.30 and as low as 4.38, with a median of 6.43.
These are only a few of the key metrics included in Sumitomo'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, SSUMY looks like an impressive value stock at the moment.
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Sumitomo Corp. (SSUMY) : Free Stock Analysis Report
