Yahoo Finance Are Investors Undervaluing Sonoco (SON) Right Now?
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 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 stock to keep an eye on is Sonoco (SON). SON is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.22 right now. For comparison, its industry sports an average P/E of 12.59. Over the past year, SON's Forward P/E has been as high as 11.97 and as low as 9.11, with a median of 10.25.
Another valuation metric that we should highlight is SON's P/B ratio of 2.87. The P/B ratio pits a stock's market value against 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 8.10. Over the past year, SON's P/B has been as high as 3.31 and as low as 2.55, with a median of 2.95.
Finally, our model also underscores that SON has a P/CF ratio of 7.75. 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. SON's current P/CF looks attractive when compared to its industry's average P/CF of 20.40. Over the past 52 weeks, SON's P/CF has been as high as 30.19 and as low as 6.90, with a median of 8.28.
These are only a few of the key metrics included in Sonoco'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, SON looks like an impressive value stock at the moment.
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Sonoco Products Company (SON) : Free Stock Analysis Report
