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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Gerdau (GGB - Free Report) . GGB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors will also notice that GGB has a PEG ratio of 0.35. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GGB's industry currently sports an average PEG of 0.40. Over the last 12 months, GGB's PEG has been as high as 5.36 and as low as -7.74, with a median of 0.60.
Another valuation metric that we should highlight is GGB's P/B ratio of 1.61. 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. GGB's current P/B looks attractive when compared to its industry's average P/B of 1.84. GGB's P/B has been as high as 1.97 and as low as 0.72, with a median of 1.28, over the past year.
Finally, investors will want to recognize that GGB has a P/CF ratio of 7.61. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.70. Within the past 12 months, GGB's P/CF has been as high as 11.14 and as low as 6.14, with a median of 8.69.
These are only a few of the key metrics included in Gerdau's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GGB looks like an impressive value stock at the moment.
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Is Gerdau (GGB) a Great Value Stock Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Gerdau (GGB - Free Report) . GGB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors will also notice that GGB has a PEG ratio of 0.35. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GGB's industry currently sports an average PEG of 0.40. Over the last 12 months, GGB's PEG has been as high as 5.36 and as low as -7.74, with a median of 0.60.
Another valuation metric that we should highlight is GGB's P/B ratio of 1.61. 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. GGB's current P/B looks attractive when compared to its industry's average P/B of 1.84. GGB's P/B has been as high as 1.97 and as low as 0.72, with a median of 1.28, over the past year.
Finally, investors will want to recognize that GGB has a P/CF ratio of 7.61. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.70. Within the past 12 months, GGB's P/CF has been as high as 11.14 and as low as 6.14, with a median of 8.69.
These are only a few of the key metrics included in Gerdau's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GGB looks like an impressive value stock at the moment.