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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Tronox (TROX - Free Report) is a stock many investors are watching right now. TROX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.63, which compares to its industry's average of 11.20. Over the past year, TROX's Forward P/E has been as high as 14.75 and as low as 6.63, with a median of 9.65.
We should also highlight that TROX has a P/B ratio of 1.53. 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. TROX's current P/B looks attractive when compared to its industry's average P/B of 1.89. TROX's P/B has been as high as 2.02 and as low as 1.22, with a median of 1.74, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TROX has a P/S ratio of 0.87. This compares to its industry's average P/S of 0.9.
Finally, we should also recognize that TROX has a P/CF ratio of 5.46. 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. TROX's current P/CF looks attractive when compared to its industry's average P/CF of 6.14. TROX's P/CF has been as high as 7.31 and as low as 1.83, with a median of 2.80, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Tronox is likely undervalued currently. And when considering the strength of its earnings outlook, TROX sticks out at as one of the market's strongest value stocks.
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Is Tronox (TROX) Stock 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Tronox (TROX - Free Report) is a stock many investors are watching right now. TROX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.63, which compares to its industry's average of 11.20. Over the past year, TROX's Forward P/E has been as high as 14.75 and as low as 6.63, with a median of 9.65.
We should also highlight that TROX has a P/B ratio of 1.53. 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. TROX's current P/B looks attractive when compared to its industry's average P/B of 1.89. TROX's P/B has been as high as 2.02 and as low as 1.22, with a median of 1.74, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TROX has a P/S ratio of 0.87. This compares to its industry's average P/S of 0.9.
Finally, we should also recognize that TROX has a P/CF ratio of 5.46. 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. TROX's current P/CF looks attractive when compared to its industry's average P/CF of 6.14. TROX's P/CF has been as high as 7.31 and as low as 1.83, with a median of 2.80, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Tronox is likely undervalued currently. And when considering the strength of its earnings outlook, TROX sticks out at as one of the market's strongest value stocks.