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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Tronox (TROX - Free Report) . TROX 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 4.56, while its industry has an average P/E of 10.91. Over the last 12 months, TROX's Forward P/E has been as high as 10.77 and as low as 4.22, with a median of 7.79.
Investors should also note that TROX holds a PEG ratio of 0.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TROX's industry has an average PEG of 0.70 right now. Over the past 52 weeks, TROX's PEG has been as high as 0.79 and as low as 0.31, with a median of 0.62.
Investors should also recognize that TROX has a P/B ratio of 1.07. 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 2.27. Within the past 52 weeks, TROX's P/B has been as high as 2.02 and as low as 0.99, with a median of 1.56.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TROX has a P/S ratio of 0.69. This compares to its industry's average P/S of 0.74.
Finally, we should also recognize that TROX has a P/CF ratio of 2.93. 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 P/CF compares to its industry's average P/CF of 7.15. Within the past 12 months, TROX's P/CF has been as high as 7.31 and as low as 2.12, with a median of 5.38.
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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Should Value Investors Buy Tronox (TROX) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Tronox (TROX - Free Report) . TROX 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 4.56, while its industry has an average P/E of 10.91. Over the last 12 months, TROX's Forward P/E has been as high as 10.77 and as low as 4.22, with a median of 7.79.
Investors should also note that TROX holds a PEG ratio of 0.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TROX's industry has an average PEG of 0.70 right now. Over the past 52 weeks, TROX's PEG has been as high as 0.79 and as low as 0.31, with a median of 0.62.
Investors should also recognize that TROX has a P/B ratio of 1.07. 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 2.27. Within the past 52 weeks, TROX's P/B has been as high as 2.02 and as low as 0.99, with a median of 1.56.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TROX has a P/S ratio of 0.69. This compares to its industry's average P/S of 0.74.
Finally, we should also recognize that TROX has a P/CF ratio of 2.93. 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 P/CF compares to its industry's average P/CF of 7.15. Within the past 12 months, TROX's P/CF has been as high as 7.31 and as low as 2.12, with a median of 5.38.
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.