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Should Value Investors Buy Mitsui & Co. (MITSY) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice is Mitsui & Co. (MITSY - Free Report) . MITSY 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 10.05, which compares to its industry's average of 15.98. MITSY's Forward P/E has been as high as 10.05 and as low as 5.62, with a median of 8.57, all within the past year.

Another valuation metric that we should highlight is MITSY's P/B ratio of 1.21. 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. This stock's P/B looks solid versus its industry's average P/B of 2.08. Within the past 52 weeks, MITSY's P/B has been as high as 1.27 and as low as 0.93, with a median of 1.08.

These are just a handful of the figures considered in Mitsui & Co.'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 MITSY is an impressive value stock right now.


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