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Is LyondellBasell (LYB) a Great Value Stock Right Now?
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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 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 stock to keep an eye on is LyondellBasell (LYB - Free Report) . LYB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.37, while its industry has an average P/E of 17.20. Over the past year, LYB's Forward P/E has been as high as 12.92 and as low as 3.76, with a median of 8.28.
Investors will also notice that LYB has a PEG ratio of 1.68. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LYB's industry has an average PEG of 2.65 right now. LYB's PEG has been as high as 1.91 and as low as 0.55, with a median of 1.07, 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LYB has a P/S ratio of 0.88. This compares to its industry's average P/S of 0.95.
Finally, our model also underscores that LYB has a P/CF ratio of 7.78. 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. LYB's P/CF compares to its industry's average P/CF of 11.73. Over the past year, LYB's P/CF has been as high as 7.83 and as low as 2.47, with a median of 6.30.
These figures are just a handful of the metrics value investors tend to look at, but they help show that LyondellBasell is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LYB feels like a great value stock at the moment.
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Is LyondellBasell (LYB) a Great Value Stock 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 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 stock to keep an eye on is LyondellBasell (LYB - Free Report) . LYB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.37, while its industry has an average P/E of 17.20. Over the past year, LYB's Forward P/E has been as high as 12.92 and as low as 3.76, with a median of 8.28.
Investors will also notice that LYB has a PEG ratio of 1.68. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LYB's industry has an average PEG of 2.65 right now. LYB's PEG has been as high as 1.91 and as low as 0.55, with a median of 1.07, 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LYB has a P/S ratio of 0.88. This compares to its industry's average P/S of 0.95.
Finally, our model also underscores that LYB has a P/CF ratio of 7.78. 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. LYB's P/CF compares to its industry's average P/CF of 11.73. Over the past year, LYB's P/CF has been as high as 7.83 and as low as 2.47, with a median of 6.30.
These figures are just a handful of the metrics value investors tend to look at, but they help show that LyondellBasell is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LYB feels like a great value stock at the moment.