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Is Sasol (SSL) a Great Value Stock Right Now?

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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.

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.

Sasol (SSL - Free Report) is a stock many investors are watching right now. SSL is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 3.51, which compares to its industry's average of 10.46. SSL's Forward P/E has been as high as 3.78 and as low as 1.58, with a median of 2.39, all within the past year.

Investors will also notice that SSL has 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 PEG compares to its industry's average PEG of 0.92. SSL's PEG has been as high as 0.38 and as low as 0.10, with a median of 0.15, all within the past year.

These are only a few of the key metrics included in Sasol'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, SSL looks like an impressive value stock at the moment.

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