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Are Investors Undervaluing CoreLogic (CLGX) Right Now?

Zacks Equity Research

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, 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.

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 CoreLogic (CLGX). CLGX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.04. This compares to its industry's average Forward P/E of 23.06. Over the past year, CLGX's Forward P/E has been as high as 17.61 and as low as 11.35, with a median of 15.28.

Investors should also note that CLGX holds a PEG ratio of 1.28. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CLGX's PEG compares to its industry's average PEG of 2.05. Within the past year, CLGX's PEG has been as high as 1.60 and as low as 1.03, with a median of 1.39.

Another notable valuation metric for CLGX is its P/B ratio of 3.40. 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. CLGX's current P/B looks attractive when compared to its industry's average P/B of 5.40. CLGX's P/B has been as high as 4.11 and as low as 2.51, with a median of 3.30, over the past year.

Finally, investors should note that CLGX has a P/CF ratio of 12.97. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CLGX's P/CF compares to its industry's average P/CF of 15.03. Within the past 12 months, CLGX's P/CF has been as high as 16.48 and as low as 7.16, with a median of 10.96.

These are only a few of the key metrics included in CoreLogic'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, CLGX looks like an impressive value stock at the moment.


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