Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Cabot (CBT)
Boston, MA-based Cabot Corporation is a leading global specialty chemicals and performance materials company. The company offer a broad range of products and solutions to customers in every corner of the planet, catering to major industries such as transportation, infrastructure, environment and consumer. Its major products include rubber and specialty grade carbon blacks, specialty compounds, activated carbons, fumed metal oxides, inkjet colorants, aerogel and cesium formate drilling fluids.
CBT sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Chemical - Diversified industry's P/E of 18.8X, shares of Cabot are trading at a forward P/E of 13.4X. CBT also has a PEG Ratio of 0.9, a Price/Cash Flow ratio of 10.8X, and a Price/Sales ratio of 1.3X.
A company's earnings performance is important for value investors as well. For fiscal 2024, one analyst revised their earnings estimate higher in the last 60 days for CBT, while the Zacks Consensus Estimate has increased $0.00 to $6.58 per share. CBT also holds an average earnings surprise of 3%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding CBT to their portfolios.
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Cabot Corporation (CBT) : Free Stock Analysis Report
