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Are Investors Undervaluing Methanex (MEOH) Right Now?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Methanex (MEOH - Free Report) . MEOH is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.04. This compares to its industry's average Forward P/E of 9.70. Over the past year, MEOH's Forward P/E has been as high as 17.99 and as low as 7.86, with a median of 11.33.
MEOH is also sporting a PEG ratio of 0.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MEOH's PEG compares to its industry's average PEG of 0.81. Within the past year, MEOH's PEG has been as high as 1.20 and as low as 0.52, with a median of 0.76.
Finally, investors should note that MEOH has a P/CF ratio of 7.16. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.23. Within the past 12 months, MEOH's P/CF has been as high as 10.54 and as low as 7, with a median of 9.28.
Value investors will likely look at more than just these metrics, but the above data helps show that Methanex is likely undervalued currently. And when considering the strength of its earnings outlook, MEOH sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Methanex (MEOH) Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Methanex (MEOH - Free Report) . MEOH is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.04. This compares to its industry's average Forward P/E of 9.70. Over the past year, MEOH's Forward P/E has been as high as 17.99 and as low as 7.86, with a median of 11.33.
MEOH is also sporting a PEG ratio of 0.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MEOH's PEG compares to its industry's average PEG of 0.81. Within the past year, MEOH's PEG has been as high as 1.20 and as low as 0.52, with a median of 0.76.
Finally, investors should note that MEOH has a P/CF ratio of 7.16. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.23. Within the past 12 months, MEOH's P/CF has been as high as 10.54 and as low as 7, with a median of 9.28.
Value investors will likely look at more than just these metrics, but the above data helps show that Methanex is likely undervalued currently. And when considering the strength of its earnings outlook, MEOH sticks out at as one of the market's strongest value stocks.