Back to top

Image: Bigstock

Should Value Investors Buy Myers (MYE) Stock?

Read MoreHide Full Article

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Myers (MYE) is a stock many investors are watching right now. MYE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.69, which compares to its industry's average of 26.80. Over the past year, MYE's Forward P/E has been as high as 22.47 and as low as 12.98, with a median of 19.79.

We should also highlight that MYE has a P/B ratio of 2.61. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. MYE's current P/B looks attractive when compared to its industry's average P/B of 3.39. Over the past 12 months, MYE's P/B has been as high as 4.30 and as low as 2.47, with a median of 3.68.

Finally, our model also underscores that MYE has a P/CF ratio of 9.13. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 18.55. MYE's P/CF has been as high as 35.36 and as low as 8.65, with a median of 27.72, all within the past year.

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

Published in