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Are These Basic Materials Stocks a Great Value Stocks Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is AdvanSix (ASIX - Free Report) . ASIX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.42 right now. For comparison, its industry sports an average P/E of 24.90. ASIX's Forward P/E has been as high as 13.39 and as low as 8.06, with a median of 9.70, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ASIX has a P/S ratio of 0.82. This compares to its industry's average P/S of 2.02.
Another great Chemical - Specialty stock you could consider is Minerals Technologies (MTX - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Minerals Technologies is currently trading with a Forward P/E ratio of 12.68 while its PEG ratio sits at 2.09. Both of the company's metrics compare favorably to its industry's average P/E of 24.90 and average PEG ratio of 1.01.
MTX's price-to-earnings ratio has been as high as 17.55 and as low as 11.42, with a median of 14.75, while its PEG ratio has been as high as 3.82 and as low as 2.06, with a median of 3.40, all within the past year.
Additionally, Minerals Technologies has a P/B ratio of 1.58 while its industry's price-to-book ratio sits at 8.71. For MTX, this valuation metric has been as high as 1.97, as low as 1.40, with a median of 1.66 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that AdvanSix and Minerals Technologies are likely undervalued currently. And when considering the strength of its earnings outlook, ASIX and MTX sticks out as one of the market's strongest value stocks.
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Are These Basic Materials Stocks a Great Value Stocks Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is AdvanSix (ASIX - Free Report) . ASIX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.42 right now. For comparison, its industry sports an average P/E of 24.90. ASIX's Forward P/E has been as high as 13.39 and as low as 8.06, with a median of 9.70, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ASIX has a P/S ratio of 0.82. This compares to its industry's average P/S of 2.02.
Another great Chemical - Specialty stock you could consider is Minerals Technologies (MTX - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Minerals Technologies is currently trading with a Forward P/E ratio of 12.68 while its PEG ratio sits at 2.09. Both of the company's metrics compare favorably to its industry's average P/E of 24.90 and average PEG ratio of 1.01.
MTX's price-to-earnings ratio has been as high as 17.55 and as low as 11.42, with a median of 14.75, while its PEG ratio has been as high as 3.82 and as low as 2.06, with a median of 3.40, all within the past year.
Additionally, Minerals Technologies has a P/B ratio of 1.58 while its industry's price-to-book ratio sits at 8.71. For MTX, this valuation metric has been as high as 1.97, as low as 1.40, with a median of 1.66 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that AdvanSix and Minerals Technologies are likely undervalued currently. And when considering the strength of its earnings outlook, ASIX and MTX sticks out as one of the market's strongest value stocks.