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Are These Basic Materials Stocks Undervalued 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Anglo American (NGLOY - Free Report) is a stock many investors are watching right now. NGLOY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.73, while its industry has an average P/E of 9.60. Over the past 52 weeks, NGLOY's Forward P/E has been as high as 9.92 and as low as 5.64, with a median of 6.97.
Another notable valuation metric for NGLOY is its P/B ratio of 1.51. 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. NGLOY's current P/B looks attractive when compared to its industry's average P/B of 3.71. NGLOY's P/B has been as high as 2.04 and as low as 1.15, with a median of 1.53, over the past year.
If you're looking for another solid Mining - Miscellaneous value stock, take a look at Teck Resources (TECK - Free Report) . TECK is a # 2 (Buy) stock with a Value score of A.
Teck Resources is trading at a forward earnings multiple of 6.85 at the moment, with a PEG ratio of 0.18. This compares to its industry's average P/E of 9.60 and average PEG ratio of 1.01.
TECK's price-to-earnings ratio has been as high as 14.95 and as low as 6.23, with a median of 8.87, while its PEG ratio has been as high as 11.68 and as low as 0.17, with a median of 0.42, all within the past year.
Teck Resources also has a P/B ratio of 0.99 compared to its industry's price-to-book ratio of 3.71. Over the past year, its P/B ratio has been as high as 1.03, as low as 0.61, with a median of 0.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Anglo American and Teck Resources are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NGLOY and TECK feels like a great value stock at the moment.
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Are These Basic Materials Stocks Undervalued Right Now?
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Anglo American (NGLOY - Free Report) is a stock many investors are watching right now. NGLOY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.73, while its industry has an average P/E of 9.60. Over the past 52 weeks, NGLOY's Forward P/E has been as high as 9.92 and as low as 5.64, with a median of 6.97.
Another notable valuation metric for NGLOY is its P/B ratio of 1.51. 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. NGLOY's current P/B looks attractive when compared to its industry's average P/B of 3.71. NGLOY's P/B has been as high as 2.04 and as low as 1.15, with a median of 1.53, over the past year.
If you're looking for another solid Mining - Miscellaneous value stock, take a look at Teck Resources (TECK - Free Report) . TECK is a # 2 (Buy) stock with a Value score of A.
Teck Resources is trading at a forward earnings multiple of 6.85 at the moment, with a PEG ratio of 0.18. This compares to its industry's average P/E of 9.60 and average PEG ratio of 1.01.
TECK's price-to-earnings ratio has been as high as 14.95 and as low as 6.23, with a median of 8.87, while its PEG ratio has been as high as 11.68 and as low as 0.17, with a median of 0.42, all within the past year.
Teck Resources also has a P/B ratio of 0.99 compared to its industry's price-to-book ratio of 3.71. Over the past year, its P/B ratio has been as high as 1.03, as low as 0.61, with a median of 0.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Anglo American and Teck Resources are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NGLOY and TECK feels like a great value stock at the moment.