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Are Investors Undervaluing Anglo American (NGLOY) Right Now?
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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Anglo American (NGLOY - Free Report) . NGLOY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.82. This compares to its industry's average Forward P/E of 10.30. NGLOY's Forward P/E has been as high as 10.41 and as low as 5.41, with a median of 7.35, all within the past year.
Investors should also recognize that NGLOY has a P/B ratio of 1.29. 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. NGLOY's current P/B looks attractive when compared to its industry's average P/B of 3.44. Over the past 12 months, NGLOY's P/B has been as high as 2.13 and as low as 1.06, with a median of 1.49.
Teck Resources (TECK - Free Report) may be another strong Mining - Miscellaneous stock to add to your shortlist. TECK is a # 2 (Buy) stock with a Value grade of A.
Shares of Teck Resources currently holds a Forward P/E ratio of 7.63, and its PEG ratio is 1.28. In comparison, its industry sports average P/E and PEG ratios of 10.30 and 1.35.
TECK's price-to-earnings ratio has been as high as 10.42 and as low as 4.16, with a median of 6.50, while its PEG ratio has been as high as 5.32 and as low as 0.11, with a median of 1.50, all within the past year.
Furthermore, Teck Resources holds a P/B ratio of 0.90 and its industry's price-to-book ratio is 3.44. TECK's P/B has been as high as 1.23, as low as 0.65, with a median of 0.94 over the past 12 months.
These are only a few of the key metrics included in Anglo American 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, NGLOY and TECK look like an impressive value stock at the moment.