Yahoo Finance Is Sonoco (SON) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Sonoco (SON). SON is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.28, while its industry has an average P/E of 12.86. Over the past 52 weeks, SON's Forward P/E has been as high as 13.46 and as low as 9.11, with a median of 10.26.
Another valuation metric that we should highlight is SON's P/B ratio of 2.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SON's current P/B looks attractive when compared to its industry's average P/B of 8.24. SON's P/B has been as high as 3.39 and as low as 2.55, with a median of 2.96, over the past year.
Finally, investors will want to recognize that SON has a P/CF ratio of 7.61. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SON's current P/CF looks attractive when compared to its industry's average P/CF of 20.78. Within the past 12 months, SON's P/CF has been as high as 32.02 and as low as 6.90, with a median of 8.33.
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
