Should Value Investors Buy OI Glass (OI) 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.
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 OI Glass (OI). OI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.25, which compares to its industry's average of 19.53. OI's Forward P/E has been as high as 8.83 and as low as 5.68, with a median of 6.91, all within the past year.
We also note that OI holds a PEG ratio of 1.16. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OI's industry has an average PEG of 2.74 right now. OI's PEG has been as high as 2.67 and as low as 0.38, with a median of 1.22, all within the past year.
We should also highlight that OI has a P/B ratio of 1.97. 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 solid versus its industry's average P/B of 2.39. OI's P/B has been as high as 2.74 and as low as 1.38, with a median of 1.80, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OI has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.58.
Finally, we should also recognize that OI has a P/CF ratio of 2.73. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.80. Over the past year, OI's P/CF has been as high as 3.78 and as low as 1.91, with a median of 2.50.
These are only a few of the key metrics included in OI Glass'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, OI looks like an impressive value stock at the moment.
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OI Glass, Inc. (OI) : Free Stock Analysis Report
