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Is Yara International ASA (YARIY) a Great Value Stock Right Now?

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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 to watch right now is Yara International ASA (YARIY - Free Report) . YARIY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.26, while its industry has an average P/E of 7.95. Over the past 52 weeks, YARIY's Forward P/E has been as high as 15.33 and as low as 7.11, with a median of 12.96.

Another valuation metric that we should highlight is YARIY's P/B ratio of 1.77. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. YARIY's current P/B looks attractive when compared to its industry's average P/B of 1.85. YARIY's P/B has been as high as 1.94 and as low as 1.33, with a median of 1.71, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. YARIY has a P/S ratio of 0.87. This compares to its industry's average P/S of 1.7.

Finally, investors will want to recognize that YARIY has a P/CF ratio of 7.78. 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. YARIY's current P/CF looks attractive when compared to its industry's average P/CF of 14.07. Over the past year, YARIY's P/CF has been as high as 8.66 and as low as 5.61, with a median of 7.79.

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


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