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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.
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.
One company to watch right now is Arkema (ARKAY - Free Report) . ARKAY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.26, which compares to its industry's average of 16.61. Over the past 52 weeks, ARKAY's Forward P/E has been as high as 12.52 and as low as 5.66, with a median of 8.87.
Another valuation metric that we should highlight is ARKAY's P/B ratio of 0.97. 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. ARKAY's current P/B looks attractive when compared to its industry's average P/B of 2.62. Within the past 52 weeks, ARKAY's P/B has been as high as 1.44 and as low as 0.65, with a median of 0.90.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ARKAY has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.74.
Finally, investors will want to recognize that ARKAY has a P/CF ratio of 4.15. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.42. ARKAY's P/CF has been as high as 4.25 and as low as 2.50, with a median of 3.39, all within the past year.
Another great Chemical - Diversified stock you could consider is Johnson Matthey (JMPLY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Johnson Matthey are currently trading at a forward earnings multiple of 10.95 and a PEG ratio of 0.64 compared to its industry's P/E and PEG ratios of 16.61 and 2.06, respectively.
JMPLY's Forward P/E has been as high as 12.27 and as low as 7.32, with a median of 10.22. During the same time period, its PEG ratio has been as high as 0.66, as low as 0.54, with a median of 0.60.
Johnson Matthey also has a P/B ratio of 1.63 compared to its industry's price-to-book ratio of 2.62. Over the past year, its P/B ratio has been as high as 1.79, as low as 1.07, with a median of 1.42.
These are just a handful of the figures considered in Arkema and Johnson Matthey's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARKAY and JMPLY is an impressive value stock right now.
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Is Arkema (ARKAY) Stock Undervalued 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.
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.
One company to watch right now is Arkema (ARKAY - Free Report) . ARKAY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.26, which compares to its industry's average of 16.61. Over the past 52 weeks, ARKAY's Forward P/E has been as high as 12.52 and as low as 5.66, with a median of 8.87.
Another valuation metric that we should highlight is ARKAY's P/B ratio of 0.97. 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. ARKAY's current P/B looks attractive when compared to its industry's average P/B of 2.62. Within the past 52 weeks, ARKAY's P/B has been as high as 1.44 and as low as 0.65, with a median of 0.90.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ARKAY has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.74.
Finally, investors will want to recognize that ARKAY has a P/CF ratio of 4.15. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.42. ARKAY's P/CF has been as high as 4.25 and as low as 2.50, with a median of 3.39, all within the past year.
Another great Chemical - Diversified stock you could consider is Johnson Matthey (JMPLY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Johnson Matthey are currently trading at a forward earnings multiple of 10.95 and a PEG ratio of 0.64 compared to its industry's P/E and PEG ratios of 16.61 and 2.06, respectively.
JMPLY's Forward P/E has been as high as 12.27 and as low as 7.32, with a median of 10.22. During the same time period, its PEG ratio has been as high as 0.66, as low as 0.54, with a median of 0.60.
Johnson Matthey also has a P/B ratio of 1.63 compared to its industry's price-to-book ratio of 2.62. Over the past year, its P/B ratio has been as high as 1.79, as low as 1.07, with a median of 1.42.
These are just a handful of the figures considered in Arkema and Johnson Matthey's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARKAY and JMPLY is an impressive value stock right now.