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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.
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 company to watch right now is Methanex (MEOH - Free Report) . MEOH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.21 right now. For comparison, its industry sports an average P/E of 10.05. Over the last 12 months, MEOH's Forward P/E has been as high as 11.38 and as low as 5.61, with a median of 8.39.
We should also highlight that MEOH has a P/B ratio of 0.99. 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. This stock's P/B looks solid versus its industry's average P/B of 1.95. Over the past 12 months, MEOH's P/B has been as high as 2.15 and as low as 0.86, with a median of 1.62.
Finally, our model also underscores that MEOH has a P/CF ratio of 2.76. 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. MEOH's current P/CF looks attractive when compared to its industry's average P/CF of 6.04. Within the past 12 months, MEOH's P/CF has been as high as 6.36 and as low as 2.38, with a median of 4.30.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Methanex is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MEOH feels like a great value stock at the moment.
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Should Value Investors Buy Methanex (MEOH) Stock?
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.
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 company to watch right now is Methanex (MEOH - Free Report) . MEOH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.21 right now. For comparison, its industry sports an average P/E of 10.05. Over the last 12 months, MEOH's Forward P/E has been as high as 11.38 and as low as 5.61, with a median of 8.39.
We should also highlight that MEOH has a P/B ratio of 0.99. 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. This stock's P/B looks solid versus its industry's average P/B of 1.95. Over the past 12 months, MEOH's P/B has been as high as 2.15 and as low as 0.86, with a median of 1.62.
Finally, our model also underscores that MEOH has a P/CF ratio of 2.76. 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. MEOH's current P/CF looks attractive when compared to its industry's average P/CF of 6.04. Within the past 12 months, MEOH's P/CF has been as high as 6.36 and as low as 2.38, with a median of 4.30.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Methanex is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MEOH feels like a great value stock at the moment.