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Is Imperial Tobacco Group (IMBBY) a Great Value Stock Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

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 stock to keep an eye on is Imperial Tobacco Group (IMBBY - Free Report) . IMBBY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.21. This compares to its industry's average Forward P/E of 14.88. IMBBY's Forward P/E has been as high as 9.58 and as low as 6.30, with a median of 8.27, all within the past year.

Investors should also note that IMBBY holds a PEG ratio of 1.13. 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. IMBBY's PEG compares to its industry's average PEG of 2.98. Over the last 12 months, IMBBY's PEG has been as high as 1.18 and as low as 0.82, with a median of 1.09.

Another notable valuation metric for IMBBY is its P/B ratio of 4.87. 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. This stock's P/B looks attractive against its industry's average P/B of 7.70. Within the past 52 weeks, IMBBY's P/B has been as high as 5.05 and as low as 3.10, with a median of 3.94.

These are only a few of the key metrics included in Imperial Tobacco Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IMBBY looks like an impressive value stock at the moment.


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