Quantcast

Are Investors Undervaluing Cooper-Standard (CPS) Right Now?


Shutterstock photo

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 company value investors might notice is Cooper-Standard (CPS). CPS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.90 right now. For comparison, its industry sports an average P/E of 10.02. Over the past 52 weeks, CPS's Forward P/E has been as high as 12.30 and as low as 6.52, with a median of 10.69.

Investors should also recognize that CPS has a P/B ratio of 1.46. 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. CPS's current P/B looks attractive when compared to its industry's average P/B of 2.47. Over the past 12 months, CPS's P/B has been as high as 2.91 and as low as 1.14, with a median of 2.47.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CPS has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.41.

Finally, our model also underscores that CPS has a P/CF ratio of 4.42. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 6.03. Over the past 52 weeks, CPS's P/CF has been as high as 8.93 and as low as 3.45, with a median of 8.

Value investors will likely look at more than just these metrics, but the above data helps show that Cooper-Standard is likely undervalued currently. And when considering the strength of its earnings outlook, CPS sticks out at as one of the market's strongest value stocks.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Cooper-Standard Holdings Inc. (CPS): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Investing , Investing Ideas , Stocks
Referenced Symbols: CPS




More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research










Research Brokers before you trade

Want to trade FX?