Are Investors Undervaluing Methanex (MEOH) Right Now?
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, 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.
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 Methanex (MEOH). MEOH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that MEOH has a P/B ratio of 1.43. 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. MEOH's current P/B looks attractive when compared to its industry's average P/B of 2.13. Over the past 12 months, MEOH's P/B has been as high as 1.56 and as low as 1.02, with a median of 1.27.
Finally, investors should note that MEOH has a P/CF ratio of 5.84. 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. This stock's P/CF looks attractive against its industry's average P/CF of 9.15. Over the past 52 weeks, MEOH's P/CF has been as high as 5.84 and as low as 2.85, with a median of 4.71.
These are just a handful of the figures considered in Methanex's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MEOH is an impressive value stock right now.
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Methanex Corporation (MEOH) : Free Stock Analysis Report
