Is CI Financial (CIXX) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is CI Financial (CIXX). CIXX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 5.01, which compares to its industry's average of 11.36. Over the past year, CIXX's Forward P/E has been as high as 8.95 and as low as 3.65, with a median of 6.18.
Investors should also note that CIXX holds a PEG ratio of 0.63. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CIXX's PEG compares to its industry's average PEG of 0.84. CIXX's PEG has been as high as 1.12 and as low as 0.46, with a median of 0.77, all within the past year.
Investors should also recognize that CIXX has a P/B ratio of 1.77. 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 stock's P/B looks solid versus its industry's average P/B of 3.09. Over the past year, CIXX's P/B has been as high as 3.89 and as low as 1.46, with a median of 2.78.
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. CIXX has a P/S ratio of 1.12. This compares to its industry's average P/S of 1.86.
Finally, our model also underscores that CIXX has a P/CF ratio of 4.93. 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 stock's P/CF looks attractive against its industry's average P/CF of 16.83. Over the past 52 weeks, CIXX's P/CF has been as high as 10.50 and as low as 4.06, with a median of 6.51.
These are just a handful of the figures considered in CI Financial'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 CIXX is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CI Financial Corp. (CIXX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
