Should Value Investors Buy Cementos Pacasmayo (CPAC) Stock?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Cementos Pacasmayo (CPAC). CPAC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.18, while its industry has an average P/E of 17.72. Over the past 52 weeks, CPAC's Forward P/E has been as high as 10.50 and as low as 7.95, with a median of 9.21.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CPAC has a P/S ratio of 0.81. This compares to its industry's average P/S of 2.04.
These are just a handful of the figures considered in Cementos Pacasmayo's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CPAC is an impressive value stock right now.
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Cementos Pacasmayo S.A.A. (CPAC) : Free Stock Analysis Report
