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

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 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 Yara International ASA (YARIY - Free Report) . YARIY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 11.14 right now. For comparison, its industry sports an average P/E of 14.92. Over the past year, YARIY's Forward P/E has been as high as 13.77 and as low as 9.27, with a median of 11.51.

We should also highlight that YARIY has a P/B ratio of 1.19. 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. This stock's P/B looks solid versus its industry's average P/B of 1.51. Over the past 12 months, YARIY's P/B has been as high as 1.19 and as low as 0.87, with a median of 1.01.

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 0.64. This compares to its industry's average P/S of 1.46.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Yara International ASA is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, YARIY feels like a great value stock at the moment.


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