Should Value Investors Buy OI Glass (OI) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 company value investors might notice is OI Glass (OI). OI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.25 right now. For comparison, its industry sports an average P/E of 15.76. OI's Forward P/E has been as high as 9.92 and as low as 5.68, with a median of 7.14, all within the past year.
OI is also sporting a PEG ratio of 1.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OI's PEG compares to its industry's average PEG of 2.21. Over the past 52 weeks, OI's PEG has been as high as 2.67 and as low as 0.88, with a median of 1.22.
Another valuation metric that we should highlight is OI's P/B ratio of 2.16. 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 stock's P/B looks solid versus its industry's average P/B of 2.55. Within the past 52 weeks, OI's P/B has been as high as 2.57 and as low as 1.38, with a median of 1.80.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OI has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.58.
Finally, our model also underscores that OI has a P/CF ratio of 3.23. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. OI's current P/CF looks attractive when compared to its industry's average P/CF of 7.27. Within the past 12 months, OI's P/CF has been as high as 3.56 and as low as 1.91, with a median of 2.51.
These figures are just a handful of the metrics value investors tend to look at, but they help show that OI Glass is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OI feels like a great value stock at the moment.
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O-I Glass, Inc. (OI) : Free Stock Analysis Report
