Back to top

Image: Bigstock

Is Loma Negra Compania Industrial Argentina (LOMA) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

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 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 company value investors might notice is Loma Negra Compania Industrial Argentina (LOMA - Free Report) . LOMA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.49 right now. For comparison, its industry sports an average P/E of 6.32. Over the past year, LOMA's Forward P/E has been as high as 13.84 and as low as 5.44, with a median of 9.62.

We also note that LOMA holds a PEG ratio of 0.21. 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. LOMA's PEG compares to its industry's average PEG of 0.43. Over the last 12 months, LOMA's PEG has been as high as 0.36 and as low as 0.21, with a median of 0.25.

Another valuation metric that we should highlight is LOMA's P/B ratio of 1.09. 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 1.45. Within the past 52 weeks, LOMA's P/B has been as high as 1.59 and as low as 0.93, with a median of 1.23.

Finally, our model also underscores that LOMA has a P/CF ratio of 4.90. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.09. LOMA's P/CF has been as high as 5.91 and as low as 2.75, with a median of 3.89, all within the past year.

These are just a handful of the figures considered in Loma Negra Compania Industrial Argentina's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that LOMA is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Loma Negra Compania Industrial Argentina S.A. Sponsored ADR (LOMA) - free report >>

Published in