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Are These Basic Materials Stocks Undervalued 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Mercer International (MERC - Free Report) . MERC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
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. MERC has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.55.
Finally, investors will want to recognize that MERC has a P/CF ratio of 3.94. 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. MERC's P/CF compares to its industry's average P/CF of 12.58. Over the past 52 weeks, MERC's P/CF has been as high as 9.63 and as low as 3.15, with a median of 5.12.
If you're looking for another solid Paper and Related Products value stock, take a look at Veritiv . VRTV is a # 2 (Buy) stock with a Value score of A.
Veritiv also has a P/B ratio of 2.43 compared to its industry's price-to-book ratio of 4.46. Over the past year, its P/B ratio has been as high as 4.10, as low as 0.52, with a median of 1.80.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Mercer International and Veritiv are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MERC and VRTV feels like a great value stock at the moment.
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Are These Basic Materials Stocks Undervalued 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Mercer International (MERC - Free Report) . MERC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
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. MERC has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.55.
Finally, investors will want to recognize that MERC has a P/CF ratio of 3.94. 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. MERC's P/CF compares to its industry's average P/CF of 12.58. Over the past 52 weeks, MERC's P/CF has been as high as 9.63 and as low as 3.15, with a median of 5.12.
If you're looking for another solid Paper and Related Products value stock, take a look at Veritiv . VRTV is a # 2 (Buy) stock with a Value score of A.
Veritiv also has a P/B ratio of 2.43 compared to its industry's price-to-book ratio of 4.46. Over the past year, its P/B ratio has been as high as 4.10, as low as 0.52, with a median of 1.80.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Mercer International and Veritiv are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MERC and VRTV feels like a great value stock at the moment.