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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 stock to keep an eye on is Israel Chemicals (ICL - Free Report) . ICL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.67 right now. For comparison, its industry sports an average P/E of 17.93. ICL's Forward P/E has been as high as 18.11 and as low as 9.76, with a median of 12.82, all within the past year.

Investors should also note that ICL holds a PEG ratio of 1.12. 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. ICL's PEG compares to its industry's average PEG of 1.74. Within the past year, ICL's PEG has been as high as 1.91 and as low as 1.03, with a median of 1.33.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ICL has a P/S ratio of 1.14. This compares to its industry's average P/S of 1.65.

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


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