Should Value Investors Buy CI Financial (CIXXF) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is CI Financial (CIXXF). CIXXF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 4.53 right now. For comparison, its industry sports an average P/E of 12.90. CIXXF's Forward P/E has been as high as 5.33 and as low as 3.37, with a median of 4.38, all within the past year.
Investors should also note that CIXXF holds a PEG ratio of 0.57. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CIXXF's PEG compares to its industry's average PEG of 0.97. Within the past year, CIXXF's PEG has been as high as 0.67 and as low as 0.42, with a median of 0.55.
We should also highlight that CIXXF has a P/B ratio of 2.08. The P/B ratio pits a stock's market value against 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 2.19. Over the past 12 months, CIXXF's P/B has been as high as 2.13 and as low as 1.36, with a median of 1.85.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CIXXF has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.78.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CI Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CIXXF feels like a great value stock at the moment.
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CI Financial Corp. (CIXXF) : Free Stock Analysis Report
