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Are Investors Undervaluing Loma Negra Compania Industrial Argentina S.A. Sponsored ADR (LOMA) Right Now?

Zacks Equity Research

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Loma Negra Compania Industrial Argentina S.A. Sponsored ADR (LOMA). LOMA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.01. This compares to its industry's average Forward P/E of 11.27. Over the past 52 weeks, LOMA's Forward P/E has been as high as 15.38 and as low as 4.41, with a median of 11.33.

Another notable valuation metric for LOMA is its P/B ratio of 1.33. 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 1.38. Over the past year, LOMA's P/B has been as high as 3.03 and as low as 1.10, with a median of 1.67.

Finally, investors should note that LOMA has a P/CF ratio of 4.70. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.69. Over the past 52 weeks, LOMA's P/CF has been as high as 10.91 and as low as 3.34, with a median of 5.89.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Loma Negra Compania Industrial Argentina S.A. Sponsored ADR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LOMA feels like a great value stock at the moment.


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