Should Value Investors Buy Colruyt (CUYTY) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is Colruyt (CUYTY). CUYTY 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 9.63, while its industry has an average P/E of 9.96. CUYTY's Forward P/E has been as high as 25.75 and as low as 8.79, with a median of 17.06, all within the past year.
Investors should also recognize that CUYTY has a P/B ratio of 2.38. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.59. Within the past 52 weeks, CUYTY's P/B has been as high as 2.46 and as low as 1.19, with a median of 1.91.
These are only a few of the key metrics included in Colruyt'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, CUYTY looks like an impressive value stock at the moment.
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Colruyt SA Unsponsored ADR (CUYTY) : Free Stock Analysis Report
