Is Voestalpine AG (VLPNY) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Neverthe...
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.
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 company to watch right now is Voestalpine AG (VLPNY). VLPNY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Another notable valuation metric for VLPNY is its P/B ratio of 1.11. 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. VLPNY's current P/B looks attractive when compared to its industry's average P/B of 3.04. VLPNY's P/B has been as high as 1.25 and as low as 0.69, with a median of 1.05, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. VLPNY has a P/S ratio of 0.55. This compares to its industry's average P/S of 0.89.
Value investors will likely look at more than just these metrics, but the above data helps show that Voestalpine AG is likely undervalued currently. And when considering the strength of its earnings outlook, VLPNY sticks out at as one of the market's strongest value stocks.
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