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.
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.
OI Glass (OI) is a stock many investors are watching right now. OI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.55, while its industry has an average P/E of 22.21. Over the past year, OI's Forward P/E has been as high as 8.56 and as low as 5.66, with a median of 6.76.
We also note that OI holds a PEG ratio of 2.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OI's PEG compares to its industry's average PEG of 7.38. Over the past 52 weeks, OI's PEG has been as high as 2.67 and as low as 0.30, with a median of 1.19.
We should also highlight that OI has a P/B ratio of 1.75. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.36. Over the past year, OI's P/B has been as high as 3.29 and as low as 1.38, with a median of 1.90.
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 0.37. This compares to its industry's average P/S of 0.63.
Finally, investors will want to recognize that OI has a P/CF ratio of 2.43. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.44. Over the past year, OI's P/CF has been as high as 3.78 and as low as 1.91, with a median of 2.66.
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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OI Glass, Inc. (OI) : Free Stock Analysis Report
