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Are These Basic Materials Stocks a Great Value Stocks Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
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 company to watch right now is The Mosaic Company (MOS - Free Report) . MOS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 5.35 right now. For comparison, its industry sports an average P/E of 7.75. MOS's Forward P/E has been as high as 20.52 and as low as 4.49, with a median of 8.58, all within the past year.
We should also highlight that MOS has a P/B ratio of 1.59. 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 stock's P/B looks attractive against its industry's average P/B of 1.93. Over the past 12 months, MOS's P/B has been as high as 1.59 and as low as 1.04, with a median of 1.28.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MOS has a P/S ratio of 1.55. This compares to its industry's average P/S of 1.67.
Finally, we should also recognize that MOS has a P/CF ratio of 6.38. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MOS's P/CF compares to its industry's average P/CF of 14.73. Within the past 12 months, MOS's P/CF has been as high as 8.28 and as low as 4.77, with a median of 5.94.
Investors could also keep in mind Yara International ASA (YARIY - Free Report) , an Fertilizers stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, Yara International ASA holds a P/B ratio of 1.90 and its industry's price-to-book ratio is 1.93. YARIY's P/B has been as high as 1.98, as low as 1.46, with a median of 1.77 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Mosaic Company and Yara International ASA are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MOS and YARIY feels like a great value stock at the moment.
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Are These Basic Materials Stocks a Great Value Stocks Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
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 company to watch right now is The Mosaic Company (MOS - Free Report) . MOS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 5.35 right now. For comparison, its industry sports an average P/E of 7.75. MOS's Forward P/E has been as high as 20.52 and as low as 4.49, with a median of 8.58, all within the past year.
We should also highlight that MOS has a P/B ratio of 1.59. 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 stock's P/B looks attractive against its industry's average P/B of 1.93. Over the past 12 months, MOS's P/B has been as high as 1.59 and as low as 1.04, with a median of 1.28.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MOS has a P/S ratio of 1.55. This compares to its industry's average P/S of 1.67.
Finally, we should also recognize that MOS has a P/CF ratio of 6.38. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MOS's P/CF compares to its industry's average P/CF of 14.73. Within the past 12 months, MOS's P/CF has been as high as 8.28 and as low as 4.77, with a median of 5.94.
Investors could also keep in mind Yara International ASA (YARIY - Free Report) , an Fertilizers stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, Yara International ASA holds a P/B ratio of 1.90 and its industry's price-to-book ratio is 1.93. YARIY's P/B has been as high as 1.98, as low as 1.46, with a median of 1.77 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Mosaic Company and Yara International ASA are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MOS and YARIY feels like a great value stock at the moment.