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Should Value Investors Buy Mitsui & Co. (MITSY) Stock?

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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.

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.

Mitsui & Co. (MITSY - Free Report) is a stock many investors are watching right now. MITSY 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 11.54, which compares to its industry's average of 13.30. Over the last 12 months, MITSY's Forward P/E has been as high as 13.51 and as low as 7.99, with a median of 9.95.

Finally, our model also underscores that MITSY has a P/CF ratio of 7.38. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MITSY's current P/CF looks attractive when compared to its industry's average P/CF of 15.93. Within the past 12 months, MITSY's P/CF has been as high as 8.54 and as low as 5.37, with a median of 6.53.

These are only a few of the key metrics included in Mitsui & Co.'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, MITSY looks like an impressive value stock at the moment.


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