Should Value Investors Buy Civeo (CVEO) 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Civeo (CVEO) is a stock many investors are watching right now. CVEO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. CVEO has a P/S ratio of 0.5. This compares to its industry's average P/S of 1.39.
Finally, investors should note that CVEO has a P/CF ratio of 4.37. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.64. Within the past 12 months, CVEO's P/CF has been as high as 5.53 and as low as 2.93, with a median of 3.77.
These are only a few of the key metrics included in Civeo'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, CVEO looks like an impressive value stock at the moment.
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Civeo Corporation (CVEO) : Free Stock Analysis Report
