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Should Value Investors Buy Cedar Realty Trust (CDR) Stock?

Zacks Equity Research

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Cedar Realty Trust (CDR) is a stock many investors are watching right now. CDR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.54, while its industry has an average P/E of 18.33. Over the past 52 weeks, CDR's Forward P/E has been as high as 7.91 and as low as 4.92, with a median of 6.68.

Finally, we should also recognize that CDR has a P/CF ratio of 5.16. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CDR's P/CF compares to its industry's average P/CF of 17.04. Over the past year, CDR's P/CF has been as high as 8.58 and as low as 3.33, with a median of 4.74.

These are only a few of the key metrics included in Cedar Realty Trust'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, CDR looks like an impressive value stock at the moment.


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