Yahoo Finance Should Value Investors Buy Mitsui & Co. (MITSY) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
Mitsui & Co. (MITSY) is a stock many investors are watching right now. MITSY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 6.90 right now. For comparison, its industry sports an average P/E of 13.41. Over the past year, MITSY's Forward P/E has been as high as 7.47 and as low as 4.51, with a median of 5.86.
Investors should also recognize that MITSY has a P/B ratio of 1.05. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.83. MITSY's P/B has been as high as 1.06 and as low as 0.69, with a median of 0.80, over the past year.
Finally, we should also recognize that MITSY has a P/CF ratio of 4.41. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. MITSY's current P/CF looks attractive when compared to its industry's average P/CF of 10.20. MITSY's P/CF has been as high as 4.73 and as low as 2.97, with a median of 3.75, all within the past year.
Another great Metal Products - Distribution stock you could consider is Reliance Steel & Aluminum Co. (RS), which is a # 2 (Buy) stock with a Value Score of A.
Reliance Steel & Aluminum Co. sports a P/B ratio of 1.81 as well; this compares to its industry's price-to-book ratio of 1.83. In the past 52 weeks, RS's P/B has been as high as 2.01, as low as 1.48, with a median of 1.72.
These are just a handful of the figures considered in Mitsui & Co. and Reliance Steel & Aluminum Co.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MITSY and RS is an impressive value stock right now.
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Mitsui & Co. (MITSY) : Free Stock Analysis Report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
