Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Usinas Siderurgicas de Minas Gerais (USNZY). USNZY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.13, while its industry has an average P/E of 7.07. Over the last 12 months, USNZY's Forward P/E has been as high as 15.30 and as low as 2.68, with a median of 6.01.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. USNZY has a P/S ratio of 0.14. This compares to its industry's average P/S of 0.33.
If you're looking for another solid Steel - Producers value stock, take a look at United States Steel (X). X is a # 2 (Buy) stock with a Value score of A.
United States Steel sports a P/B ratio of 0.48 as well; this compares to its industry's price-to-book ratio of 1.60. In the past 52 weeks, X's P/B has been as high as 0.71, as low as 0.39, with a median of 0.55.
These are just a handful of the figures considered in Usinas Siderurgicas de Minas Gerais 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 USNZY and X is an impressive value stock right now.
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