Are Investors Undervaluing Imperial Tobacco Group (IMBBY) 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Imperial Tobacco Group (IMBBY) is a stock many investors are watching right now. IMBBY 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 6.59, which compares to its industry's average of 10.77. Over the past 52 weeks, IMBBY's Forward P/E has been as high as 7.72 and as low as 5.79, with a median of 6.80.
Another notable valuation metric for IMBBY is its P/B ratio of 2.35. 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 3.02. Over the past 12 months, IMBBY's P/B has been as high as 2.79 and as low as 1.23, with a median of 2.45.
If you're looking for another solid Tobacco value stock, take a look at Turning Point Brands (TPB). TPB is a # 2 (Buy) stock with a Value score of A.
Turning Point Brands sports a P/B ratio of 2.79 as well; this compares to its industry's price-to-book ratio of 3.02. In the past 52 weeks, TPB's P/B has been as high as 4.82, as low as 2.62, with a median of 3.24.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Imperial Tobacco Group and Turning Point Brands are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IMBBY and TPB feels like a great value stock at the moment.
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Imperial Tobacco Group PLC (IMBBY) : Free Stock Analysis Report
Turning Point Brands, Inc. (TPB) : Free Stock Analysis Report
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