Should Value Investors Buy COCACOLA HBC (CCHGY) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 stock to keep an eye on is COCACOLA HBC (CCHGY). CCHGY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 16.57 right now. For comparison, its industry sports an average P/E of 21.58. Over the last 12 months, CCHGY's Forward P/E has been as high as 22.13 and as low as 10.11, with a median of 18.63.
Investors will also notice that CCHGY has a PEG ratio of 2.40. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CCHGY's PEG compares to its industry's average PEG of 3.42. Over the last 12 months, CCHGY's PEG has been as high as 2.46 and as low as 2.21, with a median of 2.33.
Investors should also recognize that CCHGY has a P/B ratio of 3.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 8.17. CCHGY's P/B has been as high as 4.70 and as low as 2.16, with a median of 3.59, over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that COCACOLA HBC is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CCHGY feels like a great value stock at the moment.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.