Should Value Investors Buy These Basic Materials Stocks?
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...
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.
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.
SSAB (SSAAY) is a stock many investors are watching right now. SSAAY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 4.38. This compares to its industry's average Forward P/E of 4.89. Over the past 52 weeks, SSAAY's Forward P/E has been as high as 20.57 and as low as 3.81, with a median of 7.38.
Another notable valuation metric for SSAAY is its P/B ratio of 0.72. 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. This stock's P/B looks solid versus its industry's average P/B of 1.53. Over the past year, SSAAY's P/B has been as high as 0.89 and as low as 0.49, with a median of 0.75.
Finally, our model also underscores that SSAAY has a P/CF ratio of 3.73. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SSAAY's P/CF compares to its industry's average P/CF of 10.59. Within the past 12 months, SSAAY's P/CF has been as high as 18.05 and as low as 3.27, with a median of 10.09.
United States Steel (X) may be another strong Steel - Producers stock to add to your shortlist. X is a # 2 (Buy) stock with a Value grade of A.
United States Steel is trading at a forward earnings multiple of 2.56 at the moment, with a PEG ratio of 0.47. This compares to its industry's average P/E of 4.89 and average PEG ratio of 0.40.
Over the last 12 months, X's P/E has been as high as 79.88, as low as -271.94, with a median of 3.91, and its PEG ratio has been as high as 9.99, as low as -33.99, with a median of 0.74.
Furthermore, United States Steel holds a P/B ratio of 0.79 and its industry's price-to-book ratio is 1.53. X's P/B has been as high as 1.65, as low as 0.69, with a median of 1.12 over the past 12 months.
These are just a handful of the figures considered in SSAB and United States Steel's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SSAAY and X is an impressive value stock right now.
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SSAB (SSAAY): Free Stock Analysis Report
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