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Should Value Investors Buy Imperial Tobacco Group PLC (IMBBY) Stock?

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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.

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.

One stock to keep an eye on is Imperial Tobacco Group PLC (IMBBY - Free Report) . IMBBY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 5.02 right now. For comparison, its industry sports an average P/E of 10.41. Over the past 52 weeks, IMBBY's Forward P/E has been as high as 7.40 and as low as 4.24, with a median of 5.89.

IMBBY is also sporting a PEG ratio of 0.72. 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. IMBBY's PEG compares to its industry's average PEG of 1.74. Within the past year, IMBBY's PEG has been as high as 1.07 and as low as 0.72, with a median of 0.92.

These are only a few of the key metrics included in Imperial Tobacco Group PLC'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, IMBBY looks like an impressive value stock at the moment.


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