Yahoo Finance Is Sumitomo (SSUMY) Stock Undervalued Right Now?
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.
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 value investors might notice is Sumitomo (SSUMY). SSUMY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.27, while its industry has an average P/E of 21.13. SSUMY's Forward P/E has been as high as 9.31 and as low as 5.11, with a median of 7.95, all within 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SSUMY has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.
Finally, we should also recognize that SSUMY has a P/CF ratio of 7.23. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 19.11. SSUMY's P/CF has been as high as 7.26 and as low as 3.91, with a median of 6.11, all within the past year.
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
