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Is CBD (CBD) a Great Value Stock Right Now?

Zacks Equity Research
·2 min read

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 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.

One company value investors might notice is CBD (CBD). CBD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.53. This compares to its industry's average Forward P/E of 22.45. Over the past 52 weeks, CBD's Forward P/E has been as high as 23.10 and as low as 8.53, with a median of 16.91.

Investors should also note that CBD holds a PEG ratio of 1.48. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CBD's industry has an average PEG of 4.27 right now. Over the last 12 months, CBD's PEG has been as high as 1.52 and as low as 0.99, with a median of 1.24.

Finally, our model also underscores that CBD has a P/CF ratio of 5.54. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.67. Over the past year, CBD's P/CF has been as high as 12.81 and as low as 5.54, with a median of 9.69.

These are just a handful of the figures considered in CBD's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CBD is an impressive value stock right now.


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Companhia Brasileira de Distribuicao (CBD) : Free Stock Analysis Report
 
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