Yahoo Finance Should Value Investors Buy Ternium (TX) Stock?
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Ternium (TX). TX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.16, while its industry has an average P/E of 8.68. Over the past 52 weeks, TX's Forward P/E has been as high as 12.43 and as low as 2.94, with a median of 4.38.
Investors should also recognize that TX has a P/B ratio of 0.63. 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 attractive against its industry's average P/B of 1.24. TX's P/B has been as high as 0.77 and as low as 0.39, with a median of 0.51, over the past year.
Another great Steel - Producers stock you could consider is Usinas Siderurgicas de Minas Gerais (USNZY), which is a # 2 (Buy) stock with a Value Score of A.
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 0.27.
Additionally, Usinas Siderurgicas de Minas Gerais has a P/B ratio of 0.15 while its industry's price-to-book ratio sits at 1.24. For USNZY, this valuation metric has been as high as 0.38, as low as 0.13, with a median of 0.17 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Ternium and Usinas Siderurgicas de Minas Gerais are likely undervalued currently. And when considering the strength of its earnings outlook, TX and USNZY sticks out as one of the market's strongest value stocks.
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Ternium S.A. (TX) : Free Stock Analysis Report
Usinas Siderurgicas de Minas Gerais SA (USNZY) : Free Stock Analysis Report
