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Should Value Investors Buy These Basic Materials Stocks?
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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.
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 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 6.40, while its industry has an average P/E of 10.02. Over the past 52 weeks, AUCOY's Forward P/E has been as high as 10.61 and as low as 6.18, with a median of 8.53.
Investors should also recognize that AUCOY has a P/B ratio of 3.76. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.15. AUCOY's P/B has been as high as 5.86 and as low as 3.64, with a median of 4.85, over the past year.
If you're looking for another solid Mining - Miscellaneous value stock, take a look at Sibanye Gold Limited (SBSW - Free Report) . SBSW is a # 1 (Strong Buy) stock with a Value score of A.
Sibanye Gold Limited sports a P/B ratio of 1.81 as well; this compares to its industry's price-to-book ratio of 4.15. In the past 52 weeks, SBSW's P/B has been as high as 3.52, as low as 1.41, with a median of 2.10.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Polymetal International and Sibanye Gold Limited are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AUCOY and SBSW feels like a great value stock at the moment.
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Should Value Investors Buy These Basic Materials Stocks?
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.
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 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 6.40, while its industry has an average P/E of 10.02. Over the past 52 weeks, AUCOY's Forward P/E has been as high as 10.61 and as low as 6.18, with a median of 8.53.
Investors should also recognize that AUCOY has a P/B ratio of 3.76. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.15. AUCOY's P/B has been as high as 5.86 and as low as 3.64, with a median of 4.85, over the past year.
If you're looking for another solid Mining - Miscellaneous value stock, take a look at Sibanye Gold Limited (SBSW - Free Report) . SBSW is a # 1 (Strong Buy) stock with a Value score of A.
Sibanye Gold Limited sports a P/B ratio of 1.81 as well; this compares to its industry's price-to-book ratio of 4.15. In the past 52 weeks, SBSW's P/B has been as high as 3.52, as low as 1.41, with a median of 2.10.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Polymetal International and Sibanye Gold Limited are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AUCOY and SBSW feels like a great value stock at the moment.