Should Value Investors Buy Loma Negra Compania Industrial Argentina (LOMA) 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 company to watch right now is Loma Negra Compania Industrial Argentina (LOMA). LOMA is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.14. This compares to its industry's average Forward P/E of 10.65. Over the past 52 weeks, LOMA's Forward P/E has been as high as 17.60 and as low as 7.84, with a median of 10.50.

Finally, we should also recognize that LOMA has a P/CF ratio of 6.31. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. LOMA's current P/CF looks attractive when compared to its industry's average P/CF of 7.89. Over the past year, LOMA's P/CF has been as high as 8.14 and as low as 3.35, with a median of 5.66.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Loma Negra Compania Industrial Argentina is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LOMA feels like a great value stock at the moment.

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

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