Are Investors Undervaluing Coca-Cola HBC (CCHGY) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Coca-Cola HBC (CCHGY). CCHGY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.22, which compares to its industry's average of 19.30. Over the past year, CCHGY's Forward P/E has been as high as 17.63 and as low as 11.68, with a median of 14.01.
Another valuation metric that we should highlight is CCHGY's P/B ratio of 3.27. 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 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 3.09.
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
