Are These Basic Materials Stocks a Great Value Stocks Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...
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 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 to watch right now is South32 (SOUHY). SOUHY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.88, while its industry has an average P/E of 8.27. SOUHY's Forward P/E has been as high as 19.08 and as low as 5.68, with a median of 10.42, all within the past year.
Another notable valuation metric for SOUHY is its P/B ratio of 1.32. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. SOUHY's current P/B looks attractive when compared to its industry's average P/B of 3.62. Within the past 52 weeks, SOUHY's P/B has been as high as 1.54 and as low as 0.85, with a median of 1.12.
Investors could also keep in mind Taseko Mines Limited (TGB), an Mining - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, Taseko Mines Limited holds a P/B ratio of 2.06 and its industry's price-to-book ratio is 3.62. TGB's P/B has been as high as 3.07, as low as 0.91, with a median of 2.04 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that South32 and Taseko Mines Limited are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SOUHY and TGB feels like a great value stock at the moment.
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South32 Ltd. (SOUHY): Free Stock Analysis Report
Taseko Mines Limited (TGB): Free Stock Analysis Report
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