Yahoo Finance Is Sasol (SSL) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 company to watch right now is Sasol (SSL). SSL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.21. This compares to its industry's average Forward P/E of 7.91. Over the past 52 weeks, SSL's Forward P/E has been as high as 6.16 and as low as 3.98, with a median of 4.68.
Investors should also note that SSL holds a PEG ratio of 0.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SSL's industry currently sports an average PEG of 0.55. Within the past year, SSL's PEG has been as high as 0.38 and as low as 0.24, with a median of 0.29.
Another notable valuation metric for SSL is its P/B ratio of 0.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.41. Over the past 12 months, SSL's P/B has been as high as 1.57 and as low as 0.74, with a median of 1.
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.
YPF Sociedad Anonima sports a P/B ratio of 0.44 as well; this compares to its industry's price-to-book ratio of 1.41. In the past 52 weeks, YPF's P/B has been as high as 0.48, as low as 0.11, with a median of 0.23.
Value investors will likely look at more than just these metrics, but the above data helps show that Sasol and YPF Sociedad Anonima are likely undervalued currently. And when considering the strength of its earnings outlook, SSL and YPF sticks out as one of the market's strongest value stocks.
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Sasol Ltd. (SSL) : Free Stock Analysis Report
YPF Sociedad Anonima (YPF) : Free Stock Analysis Report
