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Is MSC (MSM) a Great Value Stock 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, 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 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 company value investors might notice is MSC (MSM - Free Report) . MSM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 15.39, which compares to its industry's average of 22.81. MSM's Forward P/E has been as high as 15.51 and as low as 11.42, with a median of 13.55, all within the past year.

Finally, investors should note that MSM has a P/CF ratio of 12.46. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 42.33. Within the past 12 months, MSM's P/CF has been as high as 13.05 and as low as 9.84, with a median of 11.21.

Another great Industrial Services stock you could consider is Siemens (SIEGY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Siemens is currently trading with a Forward P/E ratio of 16.18 while its PEG ratio sits at 0.53. Both of the company's metrics compare favorably to its industry's average P/E of 22.81 and average PEG ratio of 1.33.

SIEGY's Forward P/E has been as high as 22.53 and as low as 10.56, with a median of 15.46. During the same time period, its PEG ratio has been as high as 2.53, as low as 0.43, with a median of 1.33.

Furthermore, Siemens holds a P/B ratio of 2.69 and its industry's price-to-book ratio is 12.20. SIEGY's P/B has been as high as 2.78, as low as 1.40, with a median of 2 over the past 12 months.

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


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