Should value investors buy Mitsui & Co. (MITSY) shares?

While the proven Zacks Rank emphasizes earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With that in mind, we are always monitoring value, growth and momentum trends to discover great companies.

Given these trends, value investing is clearly one of the most popular methods for finding strong stocks in any type of market. Value investors use a variety of methods, including tried-and-tested valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors can also use our innovative Style Scores system to find stocks with specific traits. For example, value investors should focus on the Value category. Stocks with high Zacks Ranks and “A” grades for Value are among the highest-quality value stocks on the market today.

One company that might catch the eye of value investors is Mitsui & Co. (MITSY). MITSY currently has a Zacks Rank of #2 (Buy) as well as an A grade for Value. The stock is currently trading at a P/E ratio of 9.02. For comparison, the industry average is 12.71. Over the past 12 months, MITSY’s Forward P/E ratio has been as high as 9.71 and as low as 5.54, with a median of 6.80.

Another valuation metric we should highlight is MITSY’s P/B ratio of 1.20. The P/B ratio is used to compare a stock’s market value to its book value, which is defined as total assets minus total liabilities. This stock’s P/B looks attractive when compared to the industry average of 1.91. Over the past 12 months, MITSY’s P/B has ranged from 1.27 to 0.74, with a median of 1.01.

These numbers are just a few of the metrics that value investors often look at, but they show that Mitsui & Co. is likely undervalued right now. When you consider this and the strong earnings outlook, MITSY seems like a great value stock right now.

Want the latest recommendations from Zacks Investment Research? Download the 7 best stocks for the next 30 days today. Click here to get this free report

Mitsui & Co. (MITSY): Free Stock Analysis Report

To read this article on Zacks.com, click here.

Zacks Investment Research