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Are Investors Undervaluing Rio Tinto (RIO) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Rio Tinto (RIO - Free Report) is a stock many investors are watching right now. RIO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.19, which compares to its industry's average of 10.92. Over the past year, RIO's Forward P/E has been as high as 12.28 and as low as 5.36, with a median of 7.52.
We should also highlight that RIO has a P/B ratio of 1.62. 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. This stock's P/B looks attractive against its industry's average P/B of 3.70. RIO's P/B has been as high as 1.86 and as low as 1.13, with a median of 1.51, over the past year.
Investors could also keep in mind Teck Resources (TECK - Free Report) , an Mining - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Teck Resources currently holds a Forward P/E ratio of 9.64, and its PEG ratio is 1.62. In comparison, its industry sports average P/E and PEG ratios of 10.92 and 1.08.
Over the last 12 months, TECK's P/E has been as high as 10.34, as low as 4.16, with a median of 6.50, and its PEG ratio has been as high as 5.32, as low as 0.11, with a median of 1.44.
Furthermore, Teck Resources holds a P/B ratio of 1.05 and its industry's price-to-book ratio is 3.70. TECK's P/B has been as high as 1.23, as low as 0.65, with a median of 0.95 over the past 12 months.
These are only a few of the key metrics included in Rio Tinto and Teck Resources strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, RIO and TECK look like an impressive value stock at the moment.
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Are Investors Undervaluing Rio Tinto (RIO) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Rio Tinto (RIO - Free Report) is a stock many investors are watching right now. RIO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.19, which compares to its industry's average of 10.92. Over the past year, RIO's Forward P/E has been as high as 12.28 and as low as 5.36, with a median of 7.52.
We should also highlight that RIO has a P/B ratio of 1.62. 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. This stock's P/B looks attractive against its industry's average P/B of 3.70. RIO's P/B has been as high as 1.86 and as low as 1.13, with a median of 1.51, over the past year.
Investors could also keep in mind Teck Resources (TECK - Free Report) , an Mining - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Teck Resources currently holds a Forward P/E ratio of 9.64, and its PEG ratio is 1.62. In comparison, its industry sports average P/E and PEG ratios of 10.92 and 1.08.
Over the last 12 months, TECK's P/E has been as high as 10.34, as low as 4.16, with a median of 6.50, and its PEG ratio has been as high as 5.32, as low as 0.11, with a median of 1.44.
Furthermore, Teck Resources holds a P/B ratio of 1.05 and its industry's price-to-book ratio is 3.70. TECK's P/B has been as high as 1.23, as low as 0.65, with a median of 0.95 over the past 12 months.
These are only a few of the key metrics included in Rio Tinto and Teck Resources strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, RIO and TECK look like an impressive value stock at the moment.