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MARKETS LIVE BLOG:

STOCKS RISE, LED BY STELLAR ALPHABET, MICROSOFT RESULTS

Chevron, Exxon under pressure as falling natural gas prices hit earnings

Is ANGLO AMER ADR (NGLOY) Stock Undervalued Right Now?

Zacks Equity Research
·2 min read

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

ANGLO AMER ADR (NGLOY) is a stock many investors are watching right now. NGLOY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.05, while its industry has an average P/E of 8.21. Over the past year, NGLOY's Forward P/E has been as high as 12.90 and as low as 5.86, with a median of 8.49.

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Another valuation metric that we should highlight is NGLOY's P/B ratio of 2.15. The P/B ratio is used to compare a stock's market value with 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 3.37. Within the past 52 weeks, NGLOY's P/B has been as high as 2.32 and as low as 1, with a median of 1.52.

These figures are just a handful of the metrics value investors tend to look at, but they help show that ANGLO AMER ADR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NGLOY feels like a great value stock at the moment.


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