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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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
Nexa Resources (NEXA)
. NEXA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 3.41, while its industry has an average P/E of 8.08. Over the past 52 weeks, NEXA’s Forward P/E has been as high as 8.67 and as low as 3.41, with a median of 4.87.
We should also highlight that NEXA has a P/B ratio of 0.65. The P/B is a method of comparing a stock’s market value to its book value, which is defined as total assets minus total liabilities. This stock’s P/B looks solid versus its industry’s average P/B of 1.23. Within the past 52 weeks, NEXA’s P/B has been as high as 1 and as low as 0.51, with a median of 0.68.
Finally, our model also underscores that NEXA has a P/CF ratio of 2.84. This figure highlights a company’s operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. NEXA’s P/CF compares to its industry’s average P/CF of 11.23. Over the past year, NEXA’s P/CF has been as high as 6.93 and as low as 2.21, with a median of 2.94.
If you’re looking for another solid Mining – Miscellaneous value stock, take a look at
Teck Resources (TECK)
. TECK is a # 2 (Buy) stock with a Value score of A.
Shares of Teck Resources currently holds a Forward P/E ratio of 5.82, and its PEG ratio is 0.15. In comparison, its industry sports average P/E and PEG ratios of 8.08 and 0.89.
TECK’s price-to-earnings ratio has been as high as 12.27 and as low as 4.96, with a median of 7.97, while its PEG ratio has been as high as 0.61 and as low as 0.13, with a median of 0.21, all within the past year.
Additionally, Teck Resources has a P/B ratio of 1.10 while its industry’s price-to-book ratio sits at 1.23. For TECK, this valuation metric has been as high as 1.20, as low as 0.61, with a median of 0.81 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Nexa Resources and Teck Resources are likely undervalued currently. And when considering the strength of its earnings outlook, NEXA and TECK sticks out as one of the market’s strongest value stocks.
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