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Is Trinseo (TSE) a Great Value Stock Right Now?

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Zacks Equity Research
·2 min read
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Trinseo (TSE). TSE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 15.64, which compares to its industry's average of 19.45. Over the last 12 months, TSE's Forward P/E has been as high as 6,417.42 and as low as -5,948.02, with a median of 16.76.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TSE has a P/S ratio of 0.55. This compares to its industry's average P/S of 0.9.

Value investors will likely look at more than just these metrics, but the above data helps show that Trinseo is likely undervalued currently. And when considering the strength of its earnings outlook, TSE sticks out at as one of the market's strongest value stocks.


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