Should Value Investors Buy Avient (AVNT) Stock?

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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Avient (AVNT). AVNT is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.51. This compares to its industry's average Forward P/E of 13.24. AVNT's Forward P/E has been as high as 18.10 and as low as 9.82, with a median of 13.31, all within the past year.

We should also highlight that AVNT has a P/B ratio of 1.36. The P/B ratio is used to compare a stock's market value with 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 2.10. Over the past year, AVNT's P/B has been as high as 2.04 and as low as 1.14, with a median of 1.54.

Another great Chemical - Diversified stock you could consider is Chemours (CC), which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.

Additionally, Chemours has a P/B ratio of 10.65 while its industry's price-to-book ratio sits at 2.10. For CC, this valuation metric has been as high as 10.98, as low as 2.42, with a median of 4.32 over the past year.

These are just a handful of the figures considered in Avient and Chemours's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AVNT and CC is an impressive value stock right now.

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This article originally published on Zacks Investment Research (zacks.com).

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