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Is Yara International ASA (YARIY) Stock Undervalued 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company value investors might notice is Yara International ASA (YARIY). YARIY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 4.79. This compares to its industry's average Forward P/E of 6.85. Over the past 52 weeks, YARIY's Forward P/E has been as high as 14.78 and as low as 4.43, with a median of 11.06.

Investors should also recognize that YARIY has a P/B ratio of 1.63. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.48. Within the past 52 weeks, YARIY's P/B has been as high as 1.98 and as low as 1.40, with a median of 1.77.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. YARIY has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.7.

Finally, investors should note that YARIY has a P/CF ratio of 5.60. 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 P/CF compares to its industry's average P/CF of 8.76. YARIY's P/CF has been as high as 9.84 and as low as 4.79, with a median of 7.83, all within the past year.

These are just a handful of the figures considered in Yara International ASA's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that YARIY is an impressive value stock right now.


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