Yahoo Finance Are Investors Undervaluing OI Glass (OI) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is OI Glass (OI). OI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.13 right now. For comparison, its industry sports an average P/E of 11.76. Over the past 52 weeks, OI's Forward P/E has been as high as 9.92 and as low as 5.68, with a median of 7.50.
Investors should also note that OI holds a PEG ratio of 0.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OI's PEG compares to its industry's average PEG of 0.84. Within the past year, OI's PEG has been as high as 2.67 and as low as 0.47, with a median of 1.22.
Another notable valuation metric for OI is its P/B ratio of 1.84. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. OI's current P/B looks attractive when compared to its industry's average P/B of 2.37. OI's P/B has been as high as 2.50 and as low as 1.38, with a median of 1.79, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. OI has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.5.
Finally, investors should note that OI has a P/CF ratio of 3.04. 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. OI's current P/CF looks attractive when compared to its industry's average P/CF of 6.24. Over the past year, OI's P/CF has been as high as 3.56 and as low as 1.91, with a median of 2.51.
These are just a handful of the figures considered in OI Glass'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 OI is an impressive value stock right now.
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O-I Glass, Inc. (OI) : Free Stock Analysis Report
