Are Investors Undervaluing Colruyt (CUYTY) 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, 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 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 to watch right now is Colruyt (CUYTY). CUYTY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.21. This compares to its industry's average Forward P/E of 9.32. Over the last 12 months, CUYTY's Forward P/E has been as high as 25.75 and as low as 8.79, with a median of 17.06.
Investors should also recognize that CUYTY has a P/B ratio of 2.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CUYTY's current P/B looks attractive when compared to its industry's average P/B of 5.65. Within the past 52 weeks, CUYTY's P/B has been as high as 2.40 and as low as 1.19, with a median of 1.52.
Value investors will likely look at more than just these metrics, but the above data helps show that Colruyt is likely undervalued currently. And when considering the strength of its earnings outlook, CUYTY sticks out at as one of the market's strongest value stocks.
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Colruyt SA Unsponsored ADR (CUYTY) : Free Stock Analysis Report
