Advertisement
UK markets closed
  • FTSE 100

    7,995.58
    +71.78 (+0.91%)
     
  • FTSE 250

    19,721.24
    -65.63 (-0.33%)
     
  • AIM

    755.91
    -2.92 (-0.38%)
     
  • GBP/EUR

    1.1697
    -0.0004 (-0.03%)
     
  • GBP/USD

    1.2446
    -0.0109 (-0.87%)
     
  • Bitcoin GBP

    53,666.66
    -2,789.56 (-4.94%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,116.35
    -82.71 (-1.59%)
     
  • DOW

    37,935.08
    -524.00 (-1.36%)
     
  • CRUDE OIL

    85.38
    +0.36 (+0.42%)
     
  • GOLD FUTURES

    2,352.40
    -20.30 (-0.86%)
     
  • NIKKEI 225

    39,523.55
    +80.92 (+0.21%)
     
  • HANG SENG

    16,721.69
    -373.34 (-2.18%)
     
  • DAX

    17,930.32
    -24.16 (-0.13%)
     
  • CAC 40

    8,010.83
    -12.91 (-0.16%)
     

Should Value Investors Buy Johnson Matthey (JMPLY) Stock?

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 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 stock to keep an eye on 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 a P/E ratio of 8.89, which compares to its industry's average of 15.76. Over the past year, JMPLY's Forward P/E has been as high as 11.28 and as low as 8.43, with a median of 9.87.

ADVERTISEMENT

Another notable valuation metric for JMPLY is its P/B ratio of 1.16. 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 solid versus its industry's average P/B of 1.75. Within the past 52 weeks, JMPLY's P/B has been as high as 1.64 and as low as 1.05, with a median of 1.29.

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