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Is ThyssenKrupp (TKAMY) 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. 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is ThyssenKrupp (TKAMY). TKAMY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.10 right now. For comparison, its industry sports an average P/E of 9.01. TKAMY's Forward P/E has been as high as 6.10 and as low as 2.29, with a median of 3.88, all within the past year.

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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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TKAMY has a P/S ratio of 0.11. This compares to its industry's average P/S of 0.3.

Finally, our model also underscores that TKAMY has a P/CF ratio of 1.71. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.89. Over the past 52 weeks, TKAMY's P/CF has been as high as 5.32 and as low as 0.94, with a median of 1.52.

Investors could also keep in mind Olympic Steel (ZEUS), an Steel - Producers stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Additionally, Olympic Steel has a P/B ratio of 0.90 while its industry's price-to-book ratio sits at 1.51. For ZEUS, this valuation metric has been as high as 1.02, as low as 0.50, with a median of 0.67 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that ThyssenKrupp and Olympic Steel are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TKAMY and ZEUS feels like a great value stock at the moment.

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ThyssenKrupp AG Sponsored ADR (TKAMY) : Free Stock Analysis Report

Olympic Steel, Inc. (ZEUS) : Free Stock Analysis Report

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