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Are These Basic Materials Stocks Undervalued Right Now?
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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.
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.
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.
Glencore (GLNCY - Free Report) is a stock many investors are watching right now. GLNCY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.25 right now. For comparison, its industry sports an average P/E of 9.33. Over the past year, GLNCY's Forward P/E has been as high as 12.77 and as low as 5.73, with a median of 7.69.
Another notable valuation metric for GLNCY is its P/B ratio of 2.19. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.95. GLNCY's P/B has been as high as 2.19 and as low as 1.42, with a median of 1.75, over the past year.
Sibanye Gold Limited (SBSW - Free Report) may be another strong Mining - Miscellaneous stock to add to your shortlist. SBSW is a # 2 (Buy) stock with a Value grade of A.
Sibanye Gold Limited sports a P/B ratio of 1.98 as well; this compares to its industry's price-to-book ratio of 3.95. In the past 52 weeks, SBSW's P/B has been as high as 3.52, as low as 1.41, with a median of 2.03.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Glencore and Sibanye Gold Limited are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GLNCY and SBSW feels like a great value stock at the moment.
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Are These Basic Materials Stocks 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.
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.
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.
Glencore (GLNCY - Free Report) is a stock many investors are watching right now. GLNCY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.25 right now. For comparison, its industry sports an average P/E of 9.33. Over the past year, GLNCY's Forward P/E has been as high as 12.77 and as low as 5.73, with a median of 7.69.
Another notable valuation metric for GLNCY is its P/B ratio of 2.19. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.95. GLNCY's P/B has been as high as 2.19 and as low as 1.42, with a median of 1.75, over the past year.
Sibanye Gold Limited (SBSW - Free Report) may be another strong Mining - Miscellaneous stock to add to your shortlist. SBSW is a # 2 (Buy) stock with a Value grade of A.
Sibanye Gold Limited sports a P/B ratio of 1.98 as well; this compares to its industry's price-to-book ratio of 3.95. In the past 52 weeks, SBSW's P/B has been as high as 3.52, as low as 1.41, with a median of 2.03.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Glencore and Sibanye Gold Limited are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GLNCY and SBSW feels like a great value stock at the moment.