The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Ryerson (RYI) is a stock many investors are watching right now. RYI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RYI has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.31.
Finally, investors will want to recognize that RYI has a P/CF ratio of 2.58. 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. RYI's P/CF compares to its industry's average P/CF of 5.02. Within the past 12 months, RYI's P/CF has been as high as 4.33 and as low as 1.32, with a median of 2.07.
Usinas Siderurgicas de Minas Gerais (USNZY) may be another strong Steel - Producers stock to add to your shortlist. USNZY is a # 2 (Buy) stock with a Value grade of A.
Shares of Usinas Siderurgicas de Minas Gerais currently holds a Forward P/E ratio of 11.07, and its PEG ratio is 0.75. In comparison, its industry sports average P/E and PEG ratios of 9.07 and 0.69.
Over the last 12 months, USNZY's P/E has been as high as 15.30, as low as 2.68, with a median of 4.93, and its PEG ratio has been as high as 0.75, as low as 0.16, with a median of 0.29.
Furthermore, Usinas Siderurgicas de Minas Gerais holds a P/B ratio of 0.16 and its industry's price-to-book ratio is 1.56. USNZY's P/B has been as high as 0.40, as low as 0.13, with a median of 0.18 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ryerson and Usinas Siderurgicas de Minas Gerais are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RYI and USNZY feels like a great value stock at the moment.
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