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Are These Basic Materials Stocks a Great Value Stocks 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Arkema (ARKAY - Free Report) . ARKAY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that ARKAY holds a PEG ratio of 0.39. 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. ARKAY's PEG compares to its industry's average PEG of 0.60. ARKAY's PEG has been as high as 6.80 and as low as 0.35, with a median of 0.54, all within the past year.
We should also highlight that ARKAY has a P/B ratio of 1.49. 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. This stock's P/B looks attractive against its industry's average P/B of 2.41. ARKAY's P/B has been as high as 1.62 and as low as 1.32, with a median of 1.46, over the past year.
Finally, our model also underscores that ARKAY has a P/CF ratio of 4.57. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.87. Within the past 12 months, ARKAY's P/CF has been as high as 11.77 and as low as 4.07, with a median of 4.75.
If you're looking for another solid Chemical - Diversified value stock, take a look at Huntsman (HUN - Free Report) . HUN is a # 2 (Buy) stock with a Value score of A.
Huntsman is currently trading with a Forward P/E ratio of 9.20 while its PEG ratio sits at 0.20. Both of the company's metrics compare favorably to its industry's average P/E of 12.04 and average PEG ratio of 0.60.
HUN's price-to-earnings ratio has been as high as 14.58 and as low as 7.64, with a median of 9.65, while its PEG ratio has been as high as 1.64 and as low as 0.14, with a median of 0.18, all within the past year.
Additionally, Huntsman has a P/B ratio of 1.96 while its industry's price-to-book ratio sits at 2.41. For HUN, this valuation metric has been as high as 2.11, as low as 1.39, with a median of 1.70 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Arkema and Huntsman are likely undervalued currently. And when considering the strength of its earnings outlook, ARKAY and HUN sticks out as one of the market's strongest value stocks.
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Are These Basic Materials Stocks a Great Value Stocks 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Arkema (ARKAY - Free Report) . ARKAY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that ARKAY holds a PEG ratio of 0.39. 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. ARKAY's PEG compares to its industry's average PEG of 0.60. ARKAY's PEG has been as high as 6.80 and as low as 0.35, with a median of 0.54, all within the past year.
We should also highlight that ARKAY has a P/B ratio of 1.49. 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. This stock's P/B looks attractive against its industry's average P/B of 2.41. ARKAY's P/B has been as high as 1.62 and as low as 1.32, with a median of 1.46, over the past year.
Finally, our model also underscores that ARKAY has a P/CF ratio of 4.57. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.87. Within the past 12 months, ARKAY's P/CF has been as high as 11.77 and as low as 4.07, with a median of 4.75.
If you're looking for another solid Chemical - Diversified value stock, take a look at Huntsman (HUN - Free Report) . HUN is a # 2 (Buy) stock with a Value score of A.
Huntsman is currently trading with a Forward P/E ratio of 9.20 while its PEG ratio sits at 0.20. Both of the company's metrics compare favorably to its industry's average P/E of 12.04 and average PEG ratio of 0.60.
HUN's price-to-earnings ratio has been as high as 14.58 and as low as 7.64, with a median of 9.65, while its PEG ratio has been as high as 1.64 and as low as 0.14, with a median of 0.18, all within the past year.
Additionally, Huntsman has a P/B ratio of 1.96 while its industry's price-to-book ratio sits at 2.41. For HUN, this valuation metric has been as high as 2.11, as low as 1.39, with a median of 1.70 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Arkema and Huntsman are likely undervalued currently. And when considering the strength of its earnings outlook, ARKAY and HUN sticks out as one of the market's strongest value stocks.