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Is LyondellBasell (LYB) a Great Value Stock Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

LyondellBasell (LYB - Free Report) is a stock many investors are watching right now. LYB 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 9.21, while its industry has an average P/E of 12.63. Over the last 12 months, LYB's Forward P/E has been as high as 12.81 and as low as 8.79, with a median of 10.24.

Investors will also notice that LYB has a PEG ratio of 0.97. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LYB's industry currently sports an average PEG of 1.17. Over the past 52 weeks, LYB's PEG has been as high as 1.42 and as low as 0.93, with a median of 1.14.

Finally, our model also underscores that LYB has a P/CF ratio of 5.89. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. LYB's current P/CF looks attractive when compared to its industry's average P/CF of 13.49. Within the past 12 months, LYB's P/CF has been as high as 8.94 and as low as 5.68, with a median of 7.02.

These are only a few of the key metrics included in LyondellBasell's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LYB looks like an impressive value stock at the moment.


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