Back to top

Image: Bigstock

Should Value Investors Buy HeidelbergCement (HDELY) Stock?

Read MoreHide Full Article

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, 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is HeidelbergCement (HDELY - Free Report) . HDELY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.77, which compares to its industry's average of 18.72. Over the last 12 months, HDELY's Forward P/E has been as high as 8.51 and as low as 4.68, with a median of 6.41.

Investors should also note that HDELY holds a PEG ratio of 1.16. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HDELY's industry currently sports an average PEG of 1.17. HDELY's PEG has been as high as 2.86 and as low as 0.59, with a median of 1.42, all within the past year.

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

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Heidelberg Materials AG Unsponsored ADR (HDELY) - free report >>

Published in