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Should Value Investors Buy These Basic Materials Stocks?
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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Outokumpu (OUTKY - Free Report) . OUTKY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 3.97, while its industry has an average P/E of 4.82. OUTKY's Forward P/E has been as high as 56.73 and as low as 3.97, with a median of 8.21, all within the past year.
Investors should also recognize that OUTKY has a P/B ratio of 0.72. The P/B is a method of comparing a stock's market value to 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 1.71. Within the past 52 weeks, OUTKY's P/B has been as high as 0.98 and as low as 0.46, with a median of 0.81.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OUTKY has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.45.
Finally, we should also recognize that OUTKY has a P/CF ratio of 3.63. 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. OUTKY's current P/CF looks attractive when compared to its industry's average P/CF of 10.31. Within the past 12 months, OUTKY's P/CF has been as high as 16.51 and as low as 3.63, with a median of 9.98.
If you're looking for another solid Steel - Producers value stock, take a look at SSAB (SSAAY - Free Report) . SSAAY is a # 2 (Buy) stock with a Value score of A.
Additionally, SSAB has a P/B ratio of 0.70 while its industry's price-to-book ratio sits at 1.71. For SSAAY, this valuation metric has been as high as 0.89, as low as 0.49, with a median of 0.75 over the past year.
These are only a few of the key metrics included in Outokumpu and SSAB strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, OUTKY and SSAAY look like an impressive value stock at the moment.
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Should Value Investors Buy These Basic Materials Stocks?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Outokumpu (OUTKY - Free Report) . OUTKY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 3.97, while its industry has an average P/E of 4.82. OUTKY's Forward P/E has been as high as 56.73 and as low as 3.97, with a median of 8.21, all within the past year.
Investors should also recognize that OUTKY has a P/B ratio of 0.72. The P/B is a method of comparing a stock's market value to 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 1.71. Within the past 52 weeks, OUTKY's P/B has been as high as 0.98 and as low as 0.46, with a median of 0.81.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OUTKY has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.45.
Finally, we should also recognize that OUTKY has a P/CF ratio of 3.63. 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. OUTKY's current P/CF looks attractive when compared to its industry's average P/CF of 10.31. Within the past 12 months, OUTKY's P/CF has been as high as 16.51 and as low as 3.63, with a median of 9.98.
If you're looking for another solid Steel - Producers value stock, take a look at SSAB (SSAAY - Free Report) . SSAAY is a # 2 (Buy) stock with a Value score of A.
Additionally, SSAB has a P/B ratio of 0.70 while its industry's price-to-book ratio sits at 1.71. For SSAAY, this valuation metric has been as high as 0.89, as low as 0.49, with a median of 0.75 over the past year.
These are only a few of the key metrics included in Outokumpu and SSAB strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, OUTKY and SSAAY look like an impressive value stock at the moment.