The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 Methanex (MEOH). MEOH is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.99, which compares to its industry's average of 13.49. Over the last 12 months, MEOH's Forward P/E has been as high as 15.64 and as low as 5.89, with a median of 10.72.
We should also highlight that MEOH has a P/B ratio of 1.03. Investors use the P/B ratio to look at a stock's market value versus 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 2.12. Over the past 12 months, MEOH's P/B has been as high as 1.52 and as low as 0.69, with a median of 1.05.
These are just a handful of the figures considered in Methanex'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 MEOH is an impressive value stock right now.
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Methanex Corporation (MEOH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).