Yahoo Finance Should Value Investors Buy ClevelandCliffs (CLF) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is ClevelandCliffs (CLF). CLF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.66, which compares to its industry's average of 11.99. CLF's Forward P/E has been as high as 15.79 and as low as 2.98, with a median of 5.12, all within the past year.
Investors should also recognize that CLF has a P/B ratio of 1.46. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CLF's current P/B looks attractive when compared to its industry's average P/B of 3.75. Within the past 52 weeks, CLF's P/B has been as high as 2.86 and as low as 0.84, with a median of 1.34.
Finally, investors should note that CLF has a P/CF ratio of 3.09. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.21. Over the past year, CLF's P/CF has been as high as 4.32 and as low as 1.49, with a median of 2.34.
HudBay Minerals (HBM) may be another strong Mining - Miscellaneous stock to add to your shortlist. HBM is a # 1 (Strong Buy) stock with a Value grade of A.
Shares of HudBay Minerals currently holds a Forward P/E ratio of 8.37, and its PEG ratio is 0.56. In comparison, its industry sports average P/E and PEG ratios of 11.99 and 1.18.
HBM's Forward P/E has been as high as 32.21 and as low as 3.91, with a median of 7.27. During the same time period, its PEG ratio has been as high as 2.17, as low as 0.14, with a median of 0.28.
HudBay Minerals also has a P/B ratio of 0.96 compared to its industry's price-to-book ratio of 3.75. Over the past year, its P/B ratio has been as high as 1.54, as low as 0.52, with a median of 0.89.
Value investors will likely look at more than just these metrics, but the above data helps show that ClevelandCliffs and HudBay Minerals are likely undervalued currently. And when considering the strength of its earnings outlook, CLF and HBM sticks out as one of the market's strongest value stocks.
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ClevelandCliffs Inc. (CLF) : Free Stock Analysis Report
HudBay Minerals Inc (HBM) : Free Stock Analysis Report
