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Are Investors Undervaluing Mitsui & Co. (MITSY) Right Now?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Mitsui & Co. (MITSY - Free Report) . MITSY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.31. This compares to its industry's average Forward P/E of 5.86. Over the past year, MITSY's Forward P/E has been as high as 7.42 and as low as 5.03, with a median of 6.36.
We also note that MITSY holds a PEG ratio of 0.26. 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. MITSY's PEG compares to its industry's average PEG of 0.67. Within the past year, MITSY's PEG has been as high as 0.32 and as low as 0.17, with a median of 0.27.
Another valuation metric that we should highlight is MITSY's P/B ratio of 0.77. 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. MITSY's current P/B looks attractive when compared to its industry's average P/B of 1.91. MITSY's P/B has been as high as 0.99 and as low as 0.75, with a median of 0.83, over the past year.
Finally, investors should note that MITSY has a P/CF ratio of 3.65. 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. MITSY's P/CF compares to its industry's average P/CF of 7.67. Over the past year, MITSY's P/CF has been as high as 6.92 and as low as 3.54, with a median of 5.11.
Investors could also keep in mind Reliance Steel & Aluminum Co. (RS - Free Report) , an Metal Products - Distribution stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Reliance Steel & Aluminum Co. currently holds a Forward P/E ratio of 7.11, and its PEG ratio is 1.26. In comparison, its industry sports average P/E and PEG ratios of 5.86 and 0.67.
RS's Forward P/E has been as high as 14.09 and as low as 7.07, with a median of 10.54. During the same time period, its PEG ratio has been as high as 1.57, as low as 1.21, with a median of 1.31.
Reliance Steel & Aluminum Co. sports a P/B ratio of 1.67 as well; this compares to its industry's price-to-book ratio of 1.91. In the past 52 weeks, RS's P/B has been as high as 2.06, as low as 1.51, with a median of 1.71.
These are just a handful of the figures considered in Mitsui & Co. and Reliance Steel & Aluminum Co.'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 MITSY and RS is an impressive value stock right now.
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Are Investors Undervaluing Mitsui & Co. (MITSY) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Mitsui & Co. (MITSY - Free Report) . MITSY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.31. This compares to its industry's average Forward P/E of 5.86. Over the past year, MITSY's Forward P/E has been as high as 7.42 and as low as 5.03, with a median of 6.36.
We also note that MITSY holds a PEG ratio of 0.26. 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. MITSY's PEG compares to its industry's average PEG of 0.67. Within the past year, MITSY's PEG has been as high as 0.32 and as low as 0.17, with a median of 0.27.
Another valuation metric that we should highlight is MITSY's P/B ratio of 0.77. 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. MITSY's current P/B looks attractive when compared to its industry's average P/B of 1.91. MITSY's P/B has been as high as 0.99 and as low as 0.75, with a median of 0.83, over the past year.
Finally, investors should note that MITSY has a P/CF ratio of 3.65. 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. MITSY's P/CF compares to its industry's average P/CF of 7.67. Over the past year, MITSY's P/CF has been as high as 6.92 and as low as 3.54, with a median of 5.11.
Investors could also keep in mind Reliance Steel & Aluminum Co. (RS - Free Report) , an Metal Products - Distribution stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Reliance Steel & Aluminum Co. currently holds a Forward P/E ratio of 7.11, and its PEG ratio is 1.26. In comparison, its industry sports average P/E and PEG ratios of 5.86 and 0.67.
RS's Forward P/E has been as high as 14.09 and as low as 7.07, with a median of 10.54. During the same time period, its PEG ratio has been as high as 1.57, as low as 1.21, with a median of 1.31.
Reliance Steel & Aluminum Co. sports a P/B ratio of 1.67 as well; this compares to its industry's price-to-book ratio of 1.91. In the past 52 weeks, RS's P/B has been as high as 2.06, as low as 1.51, with a median of 1.71.
These are just a handful of the figures considered in Mitsui & Co. and Reliance Steel & Aluminum Co.'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 MITSY and RS is an impressive value stock right now.