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Should Value Investors Buy Yara International ASA (YARIY) Stock?

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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 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 company to watch right now is Yara International ASA (YARIY - Free Report) . YARIY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Another valuation metric that we should highlight is YARIY's P/B ratio of 1.27. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. YARIY's current P/B looks attractive when compared to its industry's average P/B of 2.37. Over the past year, YARIY's P/B has been as high as 1.55 and as low as 0.99, with a median of 1.33.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. YARIY has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.86.

Finally, we should also recognize that YARIY has a P/CF ratio of 4.67. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. YARIY's current P/CF looks attractive when compared to its industry's average P/CF of 8.10. Within the past 12 months, YARIY's P/CF has been as high as 5.33 and as low as 2.84, with a median of 3.64.

These are just a handful of the figures considered in Yara International ASA'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 YARIY is an impressive value stock right now.


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