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Is Israel Chemicals (ICL) Stock Undervalued 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice 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 9.87, which compares to its industry's average of 17.64. Over the past 52 weeks, ICL's Forward P/E has been as high as 18.11 and as low as 9.76, with a median of 13.19.

ICL is also sporting a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ICL's PEG compares to its industry's average PEG of 1.71. Over the past 52 weeks, ICL's PEG has been as high as 1.91 and as low as 1.03, with a median of 1.34.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ICL has a P/S ratio of 1.07. This compares to its industry's average P/S of 1.57.

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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