Is CI Financial (CIXXF) a Great Value Stock 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.
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.
One company value investors might notice is CI Financial (CIXXF). CIXXF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 4.67 right now. For comparison, its industry sports an average P/E of 13.06. Over the past 52 weeks, CIXXF's Forward P/E has been as high as 5.33 and as low as 3.37, with a median of 4.49.
Investors should also note that CIXXF holds a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CIXXF's PEG compares to its industry's average PEG of 0.98. CIXXF's PEG has been as high as 0.67 and as low as 0.42, with a median of 0.56, all within the past year.
Another notable valuation metric for CIXXF is its P/B ratio of 2.17. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. CIXXF's current P/B looks attractive when compared to its industry's average P/B of 2.25. Over the past 12 months, CIXXF's P/B has been as high as 2.17 and as low as 1.36, with a median of 1.90.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CIXXF has a P/S ratio of 0.98. This compares to its industry's average P/S of 1.82.
These are only a few of the key metrics included in CI Financial'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, CIXXF looks like an impressive value stock at the moment.
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CI Financial Corp. (CIXXF) : Free Stock Analysis Report
