Is OI Glass (OI) Stock Undervalued 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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is OI Glass (OI). OI is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.18 right now. For comparison, its industry sports an average P/E of 8.88. OI's Forward P/E has been as high as 14.36 and as low as 6.51, with a median of 8.07, all within the past year.

Investors will also notice that OI has a PEG ratio of 0.23. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OI's PEG compares to its industry's average PEG of 0.25. Within the past year, OI's PEG has been as high as 1.32 and as low as 0.18, with a median of 0.25.

Another valuation metric that we should highlight is OI's P/B ratio of 1.55. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. OI's current P/B looks attractive when compared to its industry's average P/B of 1.92. Over the past 12 months, OI's P/B has been as high as 1,033.82 and as low as 1.08, with a median of 1.57.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OI has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.4.

Finally, our model also underscores that OI has a P/CF ratio of 9.31. 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. OI's current P/CF looks attractive when compared to its industry's average P/CF of 11.31. Within the past 12 months, OI's P/CF has been as high as 25.52 and as low as 4.02, with a median of 8.59.

These are just a handful of the figures considered in OI Glass's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that OI is an impressive value stock right now.

Zacks Names #1 Semiconductor Stock

This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Source Zacks-com