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Is Tronox (TROX) a Great Value Stock 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 stock to keep an eye on is Tronox (TROX - Free Report) . TROX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.73 right now. For comparison, its industry sports an average P/E of 12.03. Over the last 12 months, TROX's Forward P/E has been as high as 14.75 and as low as 7.70, with a median of 10.10.

Another valuation metric that we should highlight is TROX's P/B ratio of 1.70. The P/B ratio is used to compare a stock's market value with 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 2.39. Over the past year, TROX's P/B has been as high as 2.02 and as low as 1.22, with a median of 1.74.

Finally, our model also underscores that TROX has a P/CF ratio of 6.15. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.80. Over the past 52 weeks, TROX's P/CF has been as high as 7.31 and as low as 1.83, with a median of 2.72.

These are just a handful of the figures considered in Tronox'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 TROX is an impressive value stock right now.


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