Back to top

Is Methanex (MEOH) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Methanex (MEOH - Free Report) . MEOH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.46, while its industry has an average P/E of 11.68. Over the last 12 months, MEOH's Forward P/E has been as high as 17.99 and as low as 9.08, with a median of 11.49.

MEOH is also sporting a PEG ratio of 0.76. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MEOH's industry has an average PEG of 1.05 right now. Over the last 12 months, MEOH's PEG has been as high as 1.20 and as low as 0.61, with a median of 0.76.

Finally, our model also underscores that MEOH has a P/CF ratio of 9.88. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MEOH's P/CF compares to its industry's average P/CF of 12.37. Over the past year, MEOH's P/CF has been as high as 10.92 and as low as 8.27, with a median of 9.38.

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




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Methanex Corporation (MEOH) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in