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Are These Basic Materials Stocks a Great Value Stocks Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

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.

One stock to keep an eye on is Olin (OLN - Free Report) . OLN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.15, while its industry has an average P/E of 12.76. OLN's Forward P/E has been as high as 43.16 and as low as 5.75, with a median of 8.14, all within the past year.

Finally, investors will want to recognize that OLN has a P/CF ratio of 5.66. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.51. Within the past 12 months, OLN's P/CF has been as high as 21.07 and as low as 5.16, with a median of 7.39.

Another great Chemical - Diversified stock you could consider is Tronox (TROX - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Tronox also has a P/B ratio of 1.84 compared to its industry's price-to-book ratio of 2.55. Over the past year, its P/B ratio has been as high as 2.02, as low as 1.12, with a median of 1.69.

These are just a handful of the figures considered in Olin and Tronox'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 OLN and TROX is an impressive value stock right now.

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Olin Corporation (OLN) - free report >>

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