Is Consol Energy (CEIX) Stock Undervalued Right Now?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 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 Consol Energy (CEIX). CEIX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 2.60, which compares to its industry's average of 7.17. CEIX's Forward P/E has been as high as 10.73 and as low as 1.87, with a median of 5.50, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CEIX has a P/S ratio of 0.1. This compares to its industry's average P/S of 0.18.

Finally, our model also underscores that CEIX has a P/CF ratio of 0.49. 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. This stock's P/CF looks attractive against its industry's average P/CF of 1.91. Over the past 52 weeks, CEIX's P/CF has been as high as 2.67 and as low as 0.33, with a median of 1.32.

These are only a few of the key metrics included in Consol Energy'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, CEIX looks like an impressive value stock at the moment.

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