Is Impala Platinum (IMPUY) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 stock to keep an eye on is Impala Platinum (IMPUY). IMPUY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 4.85. This compares to its industry's average Forward P/E of 9.11. Over the past year, IMPUY's Forward P/E has been as high as 94.25 and as low as -84.52, with a median of 7.59.
Investors should also recognize that IMPUY has a P/B ratio of 1.08. Investors use the P/B ratio to look at a stock's market value versus 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 1.28. Over the past 12 months, IMPUY's P/B has been as high as 1.12 and as low as 0.26, with a median of 0.42.
Value investors will likely look at more than just these metrics, but the above data helps show that Impala Platinum is likely undervalued currently. And when considering the strength of its earnings outlook, IMPUY sticks out at as one of the market's strongest value stocks.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.