Is Coca-Cola HBC (CCHGY) Stock Undervalued 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.
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.
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.
Coca-Cola HBC (CCHGY) is a stock many investors are watching right now. CCHGY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 13.68 right now. For comparison, its industry sports an average P/E of 19.38. CCHGY's Forward P/E has been as high as 17.63 and as low as 11.68, with a median of 14.21, all within the past year.
We should also highlight that CCHGY has a P/B ratio of 3.27. 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. This company's current P/B looks solid when compared to its industry's average P/B of 8.86. Over the past 12 months, CCHGY's P/B has been as high as 3.50 and as low as 2.37, with a median of 3.06.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Coca-Cola HBC is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCHGY feels like a great value stock at the moment.
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Coca-Cola HBC (CCHGY) : Free Stock Analysis Report
