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Are Investors Undervaluing These Basic Materials Stocks Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Polymetal International . AUCOY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.45, while its industry has an average P/E of 9.76. Over the past 52 weeks, AUCOY's Forward P/E has been as high as 10.61 and as low as 6.45, with a median of 8.62.
Another notable valuation metric for AUCOY is its P/B ratio of 3.82. The P/B is a method of comparing a stock's market value to 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 4.14. AUCOY's P/B has been as high as 5.88 and as low as 3.82, with a median of 4.89, over the past year.
Sibanye Gold Limited (SBSW - Free Report) may be another strong Mining - Miscellaneous stock to add to your shortlist. SBSW is a # 1 (Strong Buy) stock with a Value grade of A.
Additionally, Sibanye Gold Limited has a P/B ratio of 1.57 while its industry's price-to-book ratio sits at 4.14. For SBSW, this valuation metric has been as high as 3.52, as low as 1.41, with a median of 2.15 over the past year.
These are just a handful of the figures considered in Polymetal International and Sibanye Gold Limited'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 AUCOY and SBSW is an impressive value stock right now.
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Are Investors Undervaluing These Basic Materials Stocks Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Polymetal International . AUCOY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.45, while its industry has an average P/E of 9.76. Over the past 52 weeks, AUCOY's Forward P/E has been as high as 10.61 and as low as 6.45, with a median of 8.62.
Another notable valuation metric for AUCOY is its P/B ratio of 3.82. The P/B is a method of comparing a stock's market value to 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 4.14. AUCOY's P/B has been as high as 5.88 and as low as 3.82, with a median of 4.89, over the past year.
Sibanye Gold Limited (SBSW - Free Report) may be another strong Mining - Miscellaneous stock to add to your shortlist. SBSW is a # 1 (Strong Buy) stock with a Value grade of A.
Additionally, Sibanye Gold Limited has a P/B ratio of 1.57 while its industry's price-to-book ratio sits at 4.14. For SBSW, this valuation metric has been as high as 3.52, as low as 1.41, with a median of 2.15 over the past year.
These are just a handful of the figures considered in Polymetal International and Sibanye Gold Limited'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 AUCOY and SBSW is an impressive value stock right now.