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Is Braskem (BAK) 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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Braskem (BAK - Free Report) . BAK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 5.62. This compares to its industry's average Forward P/E of 7.83. BAK's Forward P/E has been as high as 6.55 and as low as 2.18, with a median of 4.38, all within the past year.

BAK is also sporting a PEG ratio of 0.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BAK's PEG compares to its industry's average PEG of 0.67. BAK's PEG has been as high as 0.60 and as low as 0.21, with a median of 0.42, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. BAK has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.59.

Finally, our model also underscores that BAK has a P/CF ratio of 1.96. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BAK's current P/CF looks attractive when compared to its industry's average P/CF of 6.55. Within the past 12 months, BAK's P/CF has been as high as 13.26 and as low as 1.66, with a median of 2.30.

If you're looking for another solid Oil and Gas - Integrated - International value stock, take a look at Vista Oil & Gas (VIST - Free Report) . VIST is a # 2 (Buy) stock with a Value score of A.

Vista Oil & Gas sports a P/B ratio of 1.44 as well; this compares to its industry's price-to-book ratio of 1.50. In the past 52 weeks, VIST's P/B has been as high as 1.46, as low as 0.56, with a median of 0.91.

These are just a handful of the figures considered in Braskem and Vista Oil & Gas'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 BAK and VIST is an impressive value stock right now.


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Braskem S.A. (BAK) - free report >>

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