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Are These Industrial Products Stocks Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Komatsu (KMTUY - Free Report) . KMTUY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.39, which compares to its industry's average of 15.77. KMTUY's Forward P/E has been as high as 29.13 and as low as 10.01, with a median of 13.19, all within the past year.

Finally, our model also underscores that KMTUY has a P/CF ratio of 8.34. 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 stock's P/CF looks attractive against its industry's average P/CF of 15.74. Over the past 52 weeks, KMTUY's P/CF has been as high as 14.64 and as low as 7.77, with a median of 9.56.

Another great Manufacturing - Construction and Mining stock you could consider is Terex (TEX - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Terex sports a P/B ratio of 2.73 as well; this compares to its industry's price-to-book ratio of 5.37. In the past 52 weeks, TEX's P/B has been as high as 4.09, as low as 2.63, with a median of 3.17.

These are just a handful of the figures considered in Komatsu and Terex'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 KMTUY and TEX is an impressive value stock right now.


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Terex Corporation (TEX) - free report >>

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