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Is Iochpe-Maxion (IOCJY) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company value investors might notice is Iochpe-Maxion (IOCJY - Free Report) . IOCJY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.34, which compares to its industry's average of 10.64. Over the last 12 months, IOCJY's Forward P/E has been as high as 9.46 and as low as 9.34, with a median of 9.40.

Another valuation metric that we should highlight is IOCJY's P/B ratio of 0.84. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.39. Over the past 12 months, IOCJY's P/B has been as high as 1.16 and as low as 0.79, with a median of 0.96.

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. IOCJY has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.41.

Finally, our model also underscores that IOCJY has a P/CF ratio of 5.23. 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. IOCJY's P/CF compares to its industry's average P/CF of 5.95. Over the past year, IOCJY's P/CF has been as high as 8.58 and as low as 4.91, with a median of 6.34.

Value investors will likely look at more than just these metrics, but the above data helps show that Iochpe-Maxion is likely undervalued currently. And when considering the strength of its earnings outlook, IOCJY sticks out at as one of the market's strongest value stocks.


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