Back to top

Image: Bigstock

Is LyondellBasell (LYB) a Great Value Stock 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.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is LyondellBasell (LYB - Free Report) . LYB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.82 right now. For comparison, its industry sports an average P/E of 12.80. Over the past year, LYB's Forward P/E has been as high as 12.81 and as low as 9.33, with a median of 10.32.

LYB is also sporting a PEG ratio of 1.03. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LYB's industry currently sports an average PEG of 1.15. LYB's PEG has been as high as 1.42 and as low as 1.01, with a median of 1.18, all within the past year.

Finally, investors should note that LYB has a P/CF ratio of 6.46. 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 15.49. Over the past year, LYB's P/CF has been as high as 8.94 and as low as 5.97, with a median of 7.18.

These are only a few of the key metrics included in LyondellBasell'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, LYB looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


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


LyondellBasell Industries N.V. (LYB) - free report >>