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Are These Basic Materials Stocks Undervalued 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.
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 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 Flexible Solutions International (FSI - Free Report) . FSI 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 9.71, while its industry has an average P/E of 19.84. Over the past 52 weeks, FSI's Forward P/E has been as high as 11.54 and as low as 7.94, with a median of 9.69.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FSI has a P/S ratio of 1.42. This compares to its industry's average P/S of 2.05.
Investors could also keep in mind Hawkins (HWKN - Free Report) , an Chemical - Specialty stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Hawkins sports a P/B ratio of 2.89 as well; this compares to its industry's price-to-book ratio of 8.64. In the past 52 weeks, HWKN's P/B has been as high as 3.21, as low as 2.07, with a median of 2.68.
These are just a handful of the figures considered in Flexible Solutions International and Hawkins'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 FSI and HWKN is an impressive value stock right now.
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Are These Basic Materials Stocks Undervalued 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.
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 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 Flexible Solutions International (FSI - Free Report) . FSI 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 9.71, while its industry has an average P/E of 19.84. Over the past 52 weeks, FSI's Forward P/E has been as high as 11.54 and as low as 7.94, with a median of 9.69.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FSI has a P/S ratio of 1.42. This compares to its industry's average P/S of 2.05.
Investors could also keep in mind Hawkins (HWKN - Free Report) , an Chemical - Specialty stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Hawkins sports a P/B ratio of 2.89 as well; this compares to its industry's price-to-book ratio of 8.64. In the past 52 weeks, HWKN's P/B has been as high as 3.21, as low as 2.07, with a median of 2.68.
These are just a handful of the figures considered in Flexible Solutions International and Hawkins'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 FSI and HWKN is an impressive value stock right now.