Yahoo Finance Are Investors Undervaluing Sumitomo (SSUMY) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Sumitomo (SSUMY). SSUMY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.26 right now. For comparison, its industry sports an average P/E of 19.54. SSUMY's Forward P/E has been as high as 7.27 and as low as 4.13, with a median of 5.31, all within 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. SSUMY has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.96.
Finally, we should also recognize that SSUMY has a P/CF ratio of 4.59. 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. SSUMY's current P/CF looks attractive when compared to its industry's average P/CF of 11.95. SSUMY's P/CF has been as high as 4.60 and as low as 2.78, with a median of 3.89, all within the past year.
These are just a handful of the figures considered in Sumitomo'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 SSUMY is an impressive value stock right now.
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Sumitomo Corp. (SSUMY) : Free Stock Analysis Report
