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Is Unilever PLC (UL) a Great Value Stock 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.

Unilever PLC (UL - Free Report) is a stock many investors are watching right now. UL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 20.42, which compares to its industry's average of 22.06. Over the past 52 weeks, UL's Forward P/E has been as high as 21.52 and as low as 18.18, with a median of 19.50.

Investors will also notice that UL has a PEG ratio of 3.18. 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. UL's PEG compares to its industry's average PEG of 3.33. UL's PEG has been as high as 3.74 and as low as 2.82, with a median of 3.33, all within the past year.

Investors should also recognize that UL has a P/B ratio of 4.86. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.25. UL's P/B has been as high as 4.89 and as low as 4.05, with a median of 4.54, over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Unilever PLC is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UL feels like a great value stock at the moment.


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