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Is LyondellBasell (LYB) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is LyondellBasell (LYB - Free Report) . LYB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.16. This compares to its industry's average Forward P/E of 20.93. LYB's Forward P/E has been as high as 12.97 and as low as 3.76, with a median of 10.78, all within the past year.

Investors should also note that LYB holds a PEG ratio of 1.27. 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. LYB's industry has an average PEG of 3.23 right now. LYB's PEG has been as high as 1.91 and as low as 0.55, with a median of 1.52, all within the past year.

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


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