Send me real-time posts from this site at my email
Zacks

Is Orbia Advance (MXCHY) a Great Value Stock Right Now?

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.

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Orbia Advance (MXCHY). MXCHY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.87, while its industry has an average P/E of 12.97. Over the past 52 weeks, MXCHY's Forward P/E has been as high as 25.66 and as low as 6.56, with a median of 18.05.

Another valuation metric that we should highlight is MXCHY's P/B ratio of 1.27. 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 1.82. Over the past 12 months, MXCHY's P/B has been as high as 2.07 and as low as 1.13, with a median of 1.54.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MXCHY has a P/S ratio of 0.49. This compares to its industry's average P/S of 1.41.

Finally, we should also recognize that MXCHY has a P/CF ratio of 9.34. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. MXCHY's P/CF compares to its industry's average P/CF of 22.19. Over the past 52 weeks, MXCHY's P/CF has been as high as 13.62 and as low as 7.45, with a median of 9.34.

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


Want to Know the #1 Semiconductor Stock for 2022?

Few people know how promising the semiconductor market is. Over the last couple of years, disruptions to the supply chain have caused shortages in several industries. The absence of one single semiconductor can stop all operations in certain industries.

This year, companies that create and produce this essential material will have incredible pricing power. For a limited time, Zacks is revealing the top semiconductor stock for 2022. You'll find it in our new Special Report, One Semiconductor Stock Stands to Gain the Most.

Today, it's yours free with no obligation.

>>Give me access to my free special report.

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
 
Orbia Advance Corporation, S.A.B. de C.V. Unsponsored ADR (MXCHY): Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue