Are Investors Undervaluing Methanex (MEOH) Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Methanex (MEOH). MEOH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for MEOH is its P/B ratio of 1.25. The P/B ratio pits a stock's market value against 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 1.97. MEOH's P/B has been as high as 1.56 and as low as 0.94, with a median of 1.25, over the past year.
Finally, investors should note that MEOH has a P/CF ratio of 4.74. 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. MEOH's P/CF compares to its industry's average P/CF of 8.51. Over the past 52 weeks, MEOH's P/CF has been as high as 5.27 and as low as 2.64, with a median of 4.53.
Value investors will likely look at more than just these metrics, but the above data helps show that Methanex is likely undervalued currently. And when considering the strength of its earnings outlook, MEOH sticks out at as one of the market's strongest value stocks.
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Methanex Corporation (MEOH) : Free Stock Analysis Report
