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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Methanex (MEOH). 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 10.73, which compares to its industry's average of 19.22. 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 1.04. 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 solid versus its industry's average P/B of 1.58. 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 1.06.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Methanex is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MEOH feels like a great value stock at the moment.
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Methanex Corporation (MEOH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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