Should Value Investors Buy Mitsui & Co. (MITSY) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Mitsui & Co. (MITSY). MITSY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.56, which compares to its industry's average of 15.59. Over the past 52 weeks, MITSY's Forward P/E has been as high as 9.77 and as low as 5.62, with a median of 8.39.
Another valuation metric that we should highlight is MITSY's P/B ratio of 1.13. 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 2.05. Over the past year, MITSY's P/B has been as high as 1.27 and as low as 0.93, with a median of 1.08.
Investors could also keep in mind Reliance Steel & Aluminum Co. (RS), an Metal Products - Distribution stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Reliance Steel & Aluminum Co. also has a P/B ratio of 2.06 compared to its industry's price-to-book ratio of 2.05. Over the past year, its P/B ratio has been as high as 2.25, as low as 1.70, with a median of 2.01.
These are only a few of the key metrics included in Mitsui & Co. and Reliance Steel & Aluminum Co. strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MITSY and RS look like an impressive value stock at the moment.
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Mitsui & Co. (MITSY) : Free Stock Analysis Report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
