SunCoke Energy (SXC Stock) Should Value Investors Purchase It?
Zacks focuses on the Zacks Rank system. This system emphasizes earnings estimates, revisions and estimates to help find great stocks. To highlight our strong picks, we pay attention to the most recent value, growth, or momentum trends.
Value investing is the most popular stock market strategy. This strategy has been proven to work in all markets. Value investors use both fundamental analysis and tried-and-true metrics to locate companies they feel are undervalued at the current share price.
Investors can use our Style Scores system, which is a unique tool that allows them to identify stocks with certain traits. Value investors will focus on the “Value” category. Stocks with high Zacks ranks and “A” grades for Value will be among the most valuable value stocks available today.
Investors might be interested in one company: SunCoke Energy (SXC). SXC currently has a Zacks Rank 2 (Buy) as well as a Value grade A.
SXC’s 1.24 P/B Ratio is another notable valuation metric. The P/B rate is used to evaluate a stock’s market value against its book value. It is calculated as the total assets minus all liabilities. This company’s P/B is solid compared to the industry’s average of 1.67. SXC has had a P/B as high as 1.51 over the past 12 month and as low at 0.79 with a median of 1.13.
Investors who value stocks love the P/S metric. This is simply calculated by dividing a stock’s price with its sales. This is an preferable metric since revenue can’t be really manipulated so sales are often a better performance indicator. SXC has an P/S ratio 0.42. This is compared to the industry average P/S ratio of 0.98.
SXC’s P/CF ratio is 3.17. This number shows the company’s cash flow and can help you identify firms that are undervalued considering their cash outlook. The stock’s P/CF is attractive compared to its industry average of 3.24. SXC has had a P/CF as high as 4.61, and as low at 2.02, over the last year. The median was 3.
Another great Coal stock to consider is Yanzhou Coal Mining (YZCAY).The stock is a #2 (Buy) stock and has a Value Score A.
Yanzhou Coal Mining has a P/B of 1.05, compared to 1.67 in its industry. The P/B ratio of Yanzhou Coal Mining has varied between 1.24 and 0.71 over the past year with a median value of 0.96.
These are just a handful of key metrics in Yanzhou Coal Mining strong Value grade and SunCoke Energy. However, they help to show that the stocks may be overvalued at the moment. SXC, YZCAY and YZCAY appear to be a great value stock when you take into account the strength of the earnings outlook.
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SunCoke Energy, Inc. (SXC) : Free Stock Analysis Report
Yanzhou Coal Mining Company Limited (YZCAY) : Free Stock Analysis Report