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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Methanex (MEOH - Free Report) . MEOH is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 8.08, while its industry has an average P/E of 12.49. Over the past 52 weeks, MEOH's Forward P/E has been as high as 122.38 and as low as 7.69, with a median of 13.57.
We should also highlight that MEOH has a P/B ratio of 1.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.52. MEOH's P/B has been as high as 2.54 and as low as 1.34, with a median of 1.84, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MEOH has a P/S ratio of 0.75. This compares to its industry's average P/S of 0.91.
Finally, investors will want to recognize that MEOH has a P/CF ratio of 5.05. 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. MEOH's P/CF compares to its industry's average P/CF of 11.33. Within the past 12 months, MEOH's P/CF has been as high as 18.25 and as low as 4.82, with a median of 9.61.
These are only a few of the key metrics included in Methanex'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, MEOH looks like an impressive value stock at the moment.
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Should Value Investors Buy Methanex (MEOH) Stock?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Methanex (MEOH - Free Report) . MEOH is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 8.08, while its industry has an average P/E of 12.49. Over the past 52 weeks, MEOH's Forward P/E has been as high as 122.38 and as low as 7.69, with a median of 13.57.
We should also highlight that MEOH has a P/B ratio of 1.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.52. MEOH's P/B has been as high as 2.54 and as low as 1.34, with a median of 1.84, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MEOH has a P/S ratio of 0.75. This compares to its industry's average P/S of 0.91.
Finally, investors will want to recognize that MEOH has a P/CF ratio of 5.05. 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. MEOH's P/CF compares to its industry's average P/CF of 11.33. Within the past 12 months, MEOH's P/CF has been as high as 18.25 and as low as 4.82, with a median of 9.61.
These are only a few of the key metrics included in Methanex'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, MEOH looks like an impressive value stock at the moment.