Are Investors Undervaluing Johnson Matthey (JMPLY) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 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 has a Forward P/E ratio of 9.21. This compares to its industry's average Forward P/E of 14.36. Over the past year, JMPLY's Forward P/E has been as high as 11.45 and as low as 8.43, with a median of 9.93.
Another valuation metric that we should highlight is JMPLY's P/B ratio of 1.19. 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 1.78. Over the past 12 months, JMPLY's P/B has been as high as 1.70 and as low as 1.05, with a median of 1.31.
Value investors will likely look at more than just these metrics, but the above data helps show that Johnson Matthey is likely undervalued currently. And when considering the strength of its earnings outlook, JMPLY sticks out at as one of the market's strongest value stocks.
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Johnson Matthey PLC (JMPLY) : Free Stock Analysis Report
