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Are Investors Undervaluing Rio Tinto (RIO) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Rio Tinto (RIO - Free Report) . RIO is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.99 right now. For comparison, its industry sports an average P/E of 16.22. RIO's Forward P/E has been as high as 10.78 and as low as 8.49, with a median of 9.64, all within the past year.
We also note that RIO holds a PEG ratio of 0.37. 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. RIO's PEG compares to its industry's average PEG of 1.02. Over the last 12 months, RIO's PEG has been as high as 0.43 and as low as 0.35, with a median of 0.39.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Rio Tinto is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RIO feels like a great value stock at the moment.
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Are Investors Undervaluing Rio Tinto (RIO) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Rio Tinto (RIO - Free Report) . RIO is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.99 right now. For comparison, its industry sports an average P/E of 16.22. RIO's Forward P/E has been as high as 10.78 and as low as 8.49, with a median of 9.64, all within the past year.
We also note that RIO holds a PEG ratio of 0.37. 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. RIO's PEG compares to its industry's average PEG of 1.02. Over the last 12 months, RIO's PEG has been as high as 0.43 and as low as 0.35, with a median of 0.39.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Rio Tinto is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RIO feels like a great value stock at the moment.