Are Investors Undervaluing Loma Negra Compania Industrial Argentina (LOMA) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company to watch right now is Loma Negra Compania Industrial Argentina (LOMA). LOMA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 5.65. This compares to its industry's average Forward P/E of 10.21. Over the past 52 weeks, LOMA's Forward P/E has been as high as 8.45 and as low as 4.51, with a median of 6.61.
We should also highlight that LOMA has a P/B ratio of 0.99. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.36. Over the past 12 months, LOMA's P/B has been as high as 1.14 and as low as 0.66, with a median of 0.95.
Investors could also keep in mind Toll Brothers (TOL), an Building Products - Home Builders stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of Toll Brothers are currently trading at a forward earnings multiple of 7.12 and a PEG ratio of 0.65 compared to its industry's P/E and PEG ratios of 10.21 and 0.81, respectively.
Over the last 12 months, TOL's P/E has been as high as 8.19, as low as 3.80, with a median of 6.42, and its PEG ratio has been as high as 0.90, as low as 0.34, with a median of 0.69.
Toll Brothers also has a P/B ratio of 1.27 compared to its industry's price-to-book ratio of 1.36. Over the past year, its P/B ratio has been as high as 1.29, as low as 0.78, with a median of 1.02.
Value investors will likely look at more than just these metrics, but the above data helps show that Loma Negra Compania Industrial Argentina and Toll Brothers are likely undervalued currently. And when considering the strength of its earnings outlook, LOMA and TOL sticks out as one of the market's strongest value stocks.
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Loma Negra Compania Industrial Argentina S.A. Sponsored ADR (LOMA) : Free Stock Analysis Report
Toll Brothers Inc. (TOL) : Free Stock Analysis Report
