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Are Investors Undervaluing Johnson Matthey (JMPLY) Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Johnson Matthey (JMPLY - Free Report) . JMPLY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.33, while its industry has an average P/E of 13.99. JMPLY's Forward P/E has been as high as 12.27 and as low as 7.32, with a median of 9.26, all within the past year.

Investors will also notice that JMPLY has a PEG ratio of 0.64. 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. JMPLY's industry currently sports an average PEG of 1.69. JMPLY's PEG has been as high as 0.67 and as low as 0.54, with a median of 0.62, all within the past year.

We should also highlight that JMPLY has a P/B ratio of 1.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. JMPLY's current P/B looks attractive when compared to its industry's average P/B of 2.41. Over the past year, JMPLY's P/B has been as high as 1.67 and as low as 1.07, with a median of 1.37.

Value investors will likely look at more than just these metrics, but the above data helps show that Johnson Matthey is likely undervalued currently. And when considering the strength of its earnings outlook, JMPLY sticks out at as one of the market's strongest value stocks.


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