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Should Value Investors Buy Coca-Cola HBC (CCHGY) Stock?

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Coca-Cola HBC (CCHGY). CCHGY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.21. This compares to its industry's average Forward P/E of 19.30. Over the past year, CCHGY's Forward P/E has been as high as 17.63 and as low as 11.68, with a median of 13.85.


Another notable valuation metric for CCHGY is its P/B ratio of 3.04. 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. This company's current P/B looks solid when compared to its industry's average P/B of 8.98. Over the past 12 months, CCHGY's P/B has been as high as 3.50 and as low as 2.37, with a median of 3.10.

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

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