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Are These Basic Materials Stocks a Great Value Stocks Right Now?

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  • TGB
  • IMPUF

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.

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.

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 stock to keep an eye on is Impala Platinum (IMPUY). IMPUY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.67 right now. For comparison, its industry sports an average P/E of 8.34. IMPUY's Forward P/E has been as high as 7.05 and as low as 2.67, with a median of 4.26, all within the past year.

Another notable valuation metric for IMPUY is its P/B ratio of 1.70. 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 3.66. Within the past 52 weeks, IMPUY's P/B has been as high as 3.19 and as low as 1.51, with a median of 2.36.

Taseko Mines Limited (TGB) may be another strong Mining - Miscellaneous stock to add to your shortlist. TGB is a # 2 (Buy) stock with a Value grade of A.

Furthermore, Taseko Mines Limited holds a P/B ratio of 2.24 and its industry's price-to-book ratio is 3.66. TGB's P/B has been as high as 3.07, as low as 0.97, with a median of 2.05 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Impala Platinum and Taseko Mines Limited are likely undervalued currently. And when considering the strength of its earnings outlook, IMPUY and TGB sticks out as one of the market's strongest value stocks.


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Impala Platinum Holdings Ltd. (IMPUY) : Free Stock Analysis Report
 
Taseko Mines Limited (TGB) : Free Stock Analysis Report
 
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