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Are Investors Undervaluing Israel Chemicals (ICL) 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.

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 company to watch right now is Israel Chemicals (ICL - Free Report) . ICL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.79, which compares to its industry's average of 17.84. Over the last 12 months, ICL's Forward P/E has been as high as 18.11 and as low as 11.58, with a median of 13.65.

Investors will also notice that ICL has a PEG ratio of 1.35. 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. ICL's PEG compares to its industry's average PEG of 1.85. Within the past year, ICL's PEG has been as high as 1.91 and as low as 1.28, with a median of 1.56.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ICL has a P/S ratio of 1.23. This compares to its industry's average P/S of 1.43.

Value investors will likely look at more than just these metrics, but the above data helps show that Israel Chemicals is likely undervalued currently. And when considering the strength of its earnings outlook, ICL sticks out at as one of the market's strongest value stocks.




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