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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Sasol (SSL - Free Report) . SSL is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 3.51 right now. For comparison, its industry sports an average P/E of 10.51. Over the last 12 months, SSL's Forward P/E has been as high as 3.78 and as low as 1.58, with a median of 2.39.
Investors should also note that SSL holds a PEG ratio of 0.35. 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. SSL's industry currently sports an average PEG of 0.70. Over the last 12 months, SSL's PEG has been as high as 0.38 and as low as 0.10, with a median of 0.15.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sasol is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SSL feels like a great value stock at the moment.
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Should Value Investors Buy Sasol (SSL) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Sasol (SSL - Free Report) . SSL is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 3.51 right now. For comparison, its industry sports an average P/E of 10.51. Over the last 12 months, SSL's Forward P/E has been as high as 3.78 and as low as 1.58, with a median of 2.39.
Investors should also note that SSL holds a PEG ratio of 0.35. 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. SSL's industry currently sports an average PEG of 0.70. Over the last 12 months, SSL's PEG has been as high as 0.38 and as low as 0.10, with a median of 0.15.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sasol is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SSL feels like a great value stock at the moment.