Advertisement
UK markets close in 3 hours 14 minutes
  • FTSE 100

    7,954.44
    +22.46 (+0.28%)
     
  • FTSE 250

    19,853.25
    +42.59 (+0.21%)
     
  • AIM

    743.05
    +0.94 (+0.13%)
     
  • GBP/EUR

    1.1690
    +0.0021 (+0.18%)
     
  • GBP/USD

    1.2638
    -0.0000 (-0.00%)
     
  • Bitcoin GBP

    55,942.31
    -397.85 (-0.71%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,248.49
    +44.91 (+0.86%)
     
  • DOW

    39,760.08
    +477.75 (+1.22%)
     
  • CRUDE OIL

    82.58
    +1.23 (+1.51%)
     
  • GOLD FUTURES

    2,234.40
    +21.70 (+0.98%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,486.40
    +9.31 (+0.05%)
     
  • CAC 40

    8,224.02
    +19.21 (+0.23%)
     

Is Johnson Matthey (JMPLY) Stock Undervalued Right Now?

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, 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 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 Johnson Matthey (JMPLY). 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 10.90 right now. For comparison, its industry sports an average P/E of 17.17. Over the past 52 weeks, JMPLY's Forward P/E has been as high as 12.27 and as low as 7.32, with a median of 10.29.

ADVERTISEMENT

Another notable valuation metric for JMPLY is its P/B ratio of 1.63. The P/B is a method of comparing a stock's market value to 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 2.31. Over the past 12 months, JMPLY's P/B has been as high as 1.79 and as low as 1.07, with a median of 1.43.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Johnson Matthey PLC (JMPLY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research