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Should Value Investors Buy Glencore PLC (GLNCY) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Glencore PLC (GLNCY - Free Report) is a stock many investors are watching right now. GLNCY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.01 right now. For comparison, its industry sports an average P/E of 11.26. GLNCY's Forward P/E has been as high as 11,957.42 and as low as -17,519.96, with a median of 16.78, all within the past year.

Another valuation metric that we should highlight is GLNCY's P/B ratio of 1.43. 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. This stock's P/B looks attractive against its industry's average P/B of 3.36. Over the past 12 months, GLNCY's P/B has been as high as 1.72 and as low as 0.47, with a median of 0.97.

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


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