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Are Investors Undervaluing Methanex (MEOH) Right Now?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Methanex (MEOH - Free Report) is a stock many investors are watching right now. MEOH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.57, while its industry has an average P/E of 16.86. Over the last 12 months, MEOH's Forward P/E has been as high as 23.07 and as low as 9.66, with a median of 15.50.
Another valuation metric that we should highlight is MEOH's P/B ratio of 1.30. 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 1.92. Within the past 52 weeks, MEOH's P/B has been as high as 1.67 and as low as 1.08, with a median of 1.38.
Finally, investors should note that MEOH has a P/CF ratio of 5.52. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MEOH's P/CF compares to its industry's average P/CF of 11.13. Within the past 12 months, MEOH's P/CF has been as high as 6.73 and as low as 4.54, with a median of 5.52.
These are only a few of the key metrics included in Methanex's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MEOH looks like an impressive value stock at the moment.
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Are Investors Undervaluing Methanex (MEOH) Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Methanex (MEOH - Free Report) is a stock many investors are watching right now. MEOH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.57, while its industry has an average P/E of 16.86. Over the last 12 months, MEOH's Forward P/E has been as high as 23.07 and as low as 9.66, with a median of 15.50.
Another valuation metric that we should highlight is MEOH's P/B ratio of 1.30. 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 1.92. Within the past 52 weeks, MEOH's P/B has been as high as 1.67 and as low as 1.08, with a median of 1.38.
Finally, investors should note that MEOH has a P/CF ratio of 5.52. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MEOH's P/CF compares to its industry's average P/CF of 11.13. Within the past 12 months, MEOH's P/CF has been as high as 6.73 and as low as 4.54, with a median of 5.52.
These are only a few of the key metrics included in Methanex's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MEOH looks like an impressive value stock at the moment.