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Are Investors Undervaluing BHP Group Limited (BHP) 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.
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 BHP Group Limited (BHP - Free Report) . BHP 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 10.54, while its industry has an average P/E of 11.10. Over the last 12 months, BHP's Forward P/E has been as high as 11.51 and as low as 7, with a median of 9.23.
Another notable valuation metric for BHP is its P/B ratio of 1.87. 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. BHP's current P/B looks attractive when compared to its industry's average P/B of 3.32. Over the past 12 months, BHP's P/B has been as high as 2.13 and as low as 1.44, with a median of 1.72.
U.S. Silica Holdings (SLCA - Free Report) may be another strong Mining - Miscellaneous stock to add to your shortlist. SLCA is a # 1 (Strong Buy) stock with a Value grade of A.
Additionally, U.S. Silica Holdings has a P/B ratio of 1.37 while its industry's price-to-book ratio sits at 3.32. For SLCA, this valuation metric has been as high as 2.59, as low as 1.08, with a median of 1.53 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BHP Group Limited and U.S. Silica Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BHP and SLCA feels like a great value stock at the moment.
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Are Investors Undervaluing BHP Group Limited (BHP) 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.
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 BHP Group Limited (BHP - Free Report) . BHP 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 10.54, while its industry has an average P/E of 11.10. Over the last 12 months, BHP's Forward P/E has been as high as 11.51 and as low as 7, with a median of 9.23.
Another notable valuation metric for BHP is its P/B ratio of 1.87. 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. BHP's current P/B looks attractive when compared to its industry's average P/B of 3.32. Over the past 12 months, BHP's P/B has been as high as 2.13 and as low as 1.44, with a median of 1.72.
U.S. Silica Holdings (SLCA - Free Report) may be another strong Mining - Miscellaneous stock to add to your shortlist. SLCA is a # 1 (Strong Buy) stock with a Value grade of A.
Additionally, U.S. Silica Holdings has a P/B ratio of 1.37 while its industry's price-to-book ratio sits at 3.32. For SLCA, this valuation metric has been as high as 2.59, as low as 1.08, with a median of 1.53 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BHP Group Limited and U.S. Silica Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BHP and SLCA feels like a great value stock at the moment.