Should Value Investors Buy Braskem (BAK) Stock?
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.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Braskem (BAK). BAK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also note that BAK holds a PEG ratio of 1.05. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BAK's PEG compares to its industry's average PEG of 1.10.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BAK has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.54.
Another great Oil and Gas - Integrated - International stock you could consider is YPF Sociedad Anonima (YPF), which is a # 1 (Strong Buy) stock with a Value Score of A.
Furthermore, YPF Sociedad Anonima holds a P/B ratio of 0.59 and its industry's price-to-book ratio is 1.22. YPF's P/B has been as high as 0.63, as low as 0.34, with a median of 0.45 over the past 12 months.
These are only a few of the key metrics included in Braskem and YPF Sociedad Anonima strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BAK and YPF look like an impressive value stock at the moment.
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Braskem S.A. (BAK) : Free Stock Analysis Report
YPF Sociedad Anonima (YPF) : Free Stock Analysis Report
