Is OI Glass (OI) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is OI Glass (OI). OI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.04, while its industry has an average P/E of 9.19. Over the past 52 weeks, OI's Forward P/E has been as high as 9.92 and as low as 5.85, with a median of 7.45.
We also note that OI holds a PEG ratio of 0.40. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OI's PEG compares to its industry's average PEG of 0.61. Over the past 52 weeks, OI's PEG has been as high as 2.67 and as low as 0.39, with a median of 1.19.
Another valuation metric that we should highlight is OI's P/B ratio of 1.41. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.48. Within the past 52 weeks, OI's P/B has been as high as 2.38 and as low as 1.38, with a median of 1.76.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OI has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.46.
Finally, investors should note that OI has a P/CF ratio of 3.01. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. OI's P/CF compares to its industry's average P/CF of 3.45. Over the past year, OI's P/CF has been as high as 3.60 and as low as 1.91, with a median of 2.88.
These figures are just a handful of the metrics value investors tend to look at, but they help show that OI Glass is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OI feels like a great value stock at the moment.
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O-I Glass, Inc. (OI) : Free Stock Analysis Report
