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Is Arkema (ARKAY) a Great Value Stock 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Arkema (ARKAY - Free Report) . ARKAY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors will also notice that ARKAY has a PEG ratio of 0.40. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ARKAY's industry currently sports an average PEG of 0.71. Over the last 12 months, ARKAY's PEG has been as high as 6.41 and as low as 0.35, with a median of 0.49.

Another valuation metric that we should highlight is ARKAY's P/B ratio of 1.59. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ARKAY's current P/B looks attractive when compared to its industry's average P/B of 2.50. ARKAY's P/B has been as high as 1.62 and as low as 1.32, with a median of 1.46, over the past year.

Finally, investors will want to recognize that ARKAY has a P/CF ratio of 4.85. 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. ARKAY's P/CF compares to its industry's average P/CF of 11.31. Over the past year, ARKAY's P/CF has been as high as 11.77 and as low as 4.07, with a median of 4.71.

These are only a few of the key metrics included in Arkema's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ARKAY looks like an impressive value stock at the moment.


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