Yahoo Finance Should Value Investors Buy Yara International ASA (YARIY) Stock?
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.
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 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 value investors might notice is Yara International ASA (YARIY). YARIY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.63 right now. For comparison, its industry sports an average P/E of 8.12. Over the past year, YARIY's Forward P/E has been as high as 9.40 and as low as 3.73, with a median of 4.79.
Another notable valuation metric for YARIY is its P/B ratio of 1.52. The P/B ratio pits a stock's market value against 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 3.36. Over the past 12 months, YARIY's P/B has been as high as 1.91 and as low as 1.16, with a median of 1.47.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. YARIY has a P/S ratio of 0.48. This compares to its industry's average P/S of 1.09.
Finally, investors should note that YARIY has a P/CF ratio of 3.17. 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. YARIY's current P/CF looks attractive when compared to its industry's average P/CF of 7.84. Over the past year, YARIY's P/CF has been as high as 9.50 and as low as 2.94, with a median of 4.17.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Yara International ASA is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, YARIY feels like a great value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Yara International ASA (YARIY) : Free Stock Analysis Report
