Yahoo Finance Are Investors Undervaluing SunCoke Energy (SXC) 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.
SunCoke Energy (SXC) is a stock many investors are watching right now. SXC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for SXC is its P/B ratio of 1.32. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.48. Within the past 52 weeks, SXC's P/B has been as high as 1.48 and as low as 0.90, with a median of 1.25.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SXC has a P/S ratio of 0.42. This compares to its industry's average P/S of 1.02.
These are only a few of the key metrics included in SunCoke Energy'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, SXC looks like an impressive value stock at the moment.
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SunCoke Energy, Inc. (SXC) : Free Stock Analysis Report
