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Are Investors Undervaluing Braskem (BAK) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One stock to keep an eye on is Braskem (BAK - Free Report) . BAK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.62, while its industry has an average P/E of 5.74. Over the last 12 months, BAK's Forward P/E has been as high as 7.57 and as low as 2.18, with a median of 4.38.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BAK has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.55.
Finally, investors will want to recognize that BAK has a P/CF ratio of 1.33. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.30. Over the past 52 weeks, BAK's P/CF has been as high as 4.06 and as low as 1.33, with a median of 2.21.
Investors could also keep in mind Repsol (REPYY - Free Report) , an Oil and Gas - Integrated - International stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Repsol is trading at a forward earnings multiple of 3.12 at the moment, with a PEG ratio of 0.37. This compares to its industry's average P/E of 5.74 and average PEG ratio of 0.44.
Over the last 12 months, REPYY's P/E has been as high as 7.40, as low as 3.12, with a median of 5.43, and its PEG ratio has been as high as 1.22, as low as 0.11, with a median of 0.18.
Furthermore, Repsol holds a P/B ratio of 0.67 and its industry's price-to-book ratio is 1.23. REPYY's P/B has been as high as 0.96, as low as 0.63, with a median of 0.74 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Braskem and Repsol are likely undervalued currently. And when considering the strength of its earnings outlook, BAK and REPYY sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Braskem (BAK) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One stock to keep an eye on is Braskem (BAK - Free Report) . BAK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.62, while its industry has an average P/E of 5.74. Over the last 12 months, BAK's Forward P/E has been as high as 7.57 and as low as 2.18, with a median of 4.38.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BAK has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.55.
Finally, investors will want to recognize that BAK has a P/CF ratio of 1.33. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.30. Over the past 52 weeks, BAK's P/CF has been as high as 4.06 and as low as 1.33, with a median of 2.21.
Investors could also keep in mind Repsol (REPYY - Free Report) , an Oil and Gas - Integrated - International stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Repsol is trading at a forward earnings multiple of 3.12 at the moment, with a PEG ratio of 0.37. This compares to its industry's average P/E of 5.74 and average PEG ratio of 0.44.
Over the last 12 months, REPYY's P/E has been as high as 7.40, as low as 3.12, with a median of 5.43, and its PEG ratio has been as high as 1.22, as low as 0.11, with a median of 0.18.
Furthermore, Repsol holds a P/B ratio of 0.67 and its industry's price-to-book ratio is 1.23. REPYY's P/B has been as high as 0.96, as low as 0.63, with a median of 0.74 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Braskem and Repsol are likely undervalued currently. And when considering the strength of its earnings outlook, BAK and REPYY sticks out as one of the market's strongest value stocks.