Is Cable One (CABO) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Cable One (CABO) is a stock many investors are watching right now. CABO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also recognize that CABO has a P/B ratio of 2.05. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.23. CABO's P/B has been as high as 2.81 and as low as 1.90, with a median of 2.20, over the past year.
Finally, our model also underscores that CABO has a P/CF ratio of 8.45. 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. CABO's current P/CF looks attractive when compared to its industry's average P/CF of 9.82. Over the past year, CABO's P/CF has been as high as 9.78 and as low as 5.24, with a median of 8.01.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Cable One is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CABO feels like a great value stock at the moment.
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Cable One, Inc. (CABO) : Free Stock Analysis Report
