Back to top

Image: Bigstock

Why ITOCHU (ITOCY) Could Be a Top Value Stock Pick

Read MoreHide Full Article

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; ITOCHU Corporation (ITOCY - Free Report) .

ITOCHU in Focus

ITOCY may be an interesting play thanks to its forward PE of 6.8, its P/S ratio of 0.5, and its decent dividend yield of 1.9%. These factors suggest that ITOCHU is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that ITOCY has decent revenue metrics to back up its earnings.

But before you think that ITOCHU is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 27.8% in the past 30 days, thanks to one upward revision in the past one month compared to none lower.

This estimate strength is actually enough to push ITOCY to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

So really, ITOCHU is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Itochu Corp. (ITOCY) - free report >>