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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Methanex (MEOH) is a stock many investors are watching right now. MEOH is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.99, which compares to its industry's average of 15.10. Over the past 52 weeks, MEOH's Forward P/E has been as high as 15.64 and as low as 5.89, with a median of 10.72.
Investors should also recognize that MEOH has a P/B ratio of 1.03. 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 solid versus its industry's average P/B of 2.04. Within the past 52 weeks, 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 only a few of the key metrics included in Methanex'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, MEOH looks like an impressive value stock at the moment.
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Methanex Corporation (MEOH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).