Yahoo Finance Is Johnson Matthey (JMPLY) a Great Value Stock Right Now?
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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Johnson Matthey (JMPLY) is a stock many investors are watching right now. JMPLY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.69 right now. For comparison, its industry sports an average P/E of 16.76. Over the last 12 months, JMPLY's Forward P/E has been as high as 12.27 and as low as 7.32, with a median of 10.04.
We should also highlight that JMPLY has a P/B ratio of 1.74. 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 2.63. Over the past year, JMPLY's P/B has been as high as 1.79 and as low as 1.07, with a median of 1.40.
If you're looking for another solid Chemical - Diversified value stock, take a look at Methanex (MEOH). MEOH is a # 2 (Buy) stock with a Value score of A.
Furthermore, Methanex holds a P/B ratio of 1.50 and its industry's price-to-book ratio is 2.63. MEOH's P/B has been as high as 2.15, as low as 0.86, with a median of 1.17 over the past 12 months.
These are only a few of the key metrics included in Johnson Matthey and Methanex strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, JMPLY and MEOH look like an impressive value stock at the moment.
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Johnson Matthey PLC (JMPLY) : Free Stock Analysis Report
Methanex Corporation (MEOH) : Free Stock Analysis Report
