Is Loma Negra Compania Industrial Argentina S.A. Sponsored ADR (LOMA) Stock Undervalued Right Now?

LOMA

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, 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.

Loma Negra Compania Industrial Argentina S.A. Sponsored ADR (LOMA - Free Report) is a stock many investors are watching right now. LOMA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another notable valuation metric for LOMA is its P/B ratio of 0.66. Investors use the P/B ratio to look at a stock's market value versus 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 1.38. LOMA's P/B has been as high as 3.03 and as low as 0.63, with a median of 1.39, over the past year.

Finally, we should also recognize that LOMA has a P/CF ratio of 2.90. 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. LOMA's P/CF compares to its industry's average P/CF of 9.69. Within the past 12 months, LOMA's P/CF has been as high as 9.82 and as low as 2.77, with a median of 5.40.

These are just a handful of the figures considered in Loma Negra Compania Industrial Argentina S.A. Sponsored ADR's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that LOMA is an impressive value stock right now.

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