Yahoo Finance Should Value Investors Buy Imperial Tobacco Group (IMBBY) Stock?
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.
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 Imperial Tobacco Group (IMBBY). IMBBY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.27, while its industry has an average P/E of 10.34. IMBBY's Forward P/E has been as high as 6.47 and as low as 5.33, with a median of 6, all within the past year.
Investors will also notice that IMBBY has a PEG ratio of 0.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IMBBY's industry currently sports an average PEG of 2.12. Over the past 52 weeks, IMBBY's PEG has been as high as 1.03 and as low as 0.73, with a median of 0.86.
Value investors will likely look at more than just these metrics, but the above data helps show that Imperial Tobacco Group is likely undervalued currently. And when considering the strength of its earnings outlook, IMBBY sticks out at as one of the market's strongest value stocks.
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
Imperial Tobacco Group PLC (IMBBY) : Free Stock Analysis Report
