Should Value Investors Buy Imperial Tobacco Group PLC (IMBBY) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 company value investors might notice is Imperial Tobacco Group PLC (IMBBY). IMBBY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 5.23, while its industry has an average P/E of 10.45. Over the past 52 weeks, IMBBY's Forward P/E has been as high as 7.40 and as low as 4.24, with a median of 5.95.
Investors should also note that IMBBY holds a PEG ratio of 0.72. 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 PEG compares to its industry's average PEG of 1.75. Over the past 52 weeks, IMBBY's PEG has been as high as 1.07 and as low as 0.72, with a median of 0.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Imperial Tobacco Group PLC is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IMBBY feels like a great value stock at the moment.
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