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Are These Basic Materials Stocks Undervalued Right Now?
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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is ClevelandCliffs (CLF - Free Report) . CLF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 3.85. This compares to its industry's average Forward P/E of 10.08. Over the past 52 weeks, CLF's Forward P/E has been as high as 7.33 and as low as 3.49, with a median of 5.60.
Investors should also recognize that CLF has a P/B ratio of 2.40. The P/B ratio pits a stock's market value against 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 4.27. Over the past year, CLF's P/B has been as high as 4.49 and as low as 2.24, with a median of 2.91.
Another great Mining - Miscellaneous stock you could consider is Sibanye Gold Limited (SBSW - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Sibanye Gold Limited sports a P/B ratio of 1.71 as well; this compares to its industry's price-to-book ratio of 4.27. In the past 52 weeks, SBSW's P/B has been as high as 3.52, as low as 1.41, with a median of 2.11.
These are just a handful of the figures considered in ClevelandCliffs and Sibanye Gold Limited's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CLF and SBSW is an impressive value stock right now.
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Are These Basic Materials Stocks Undervalued Right Now?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is ClevelandCliffs (CLF - Free Report) . CLF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 3.85. This compares to its industry's average Forward P/E of 10.08. Over the past 52 weeks, CLF's Forward P/E has been as high as 7.33 and as low as 3.49, with a median of 5.60.
Investors should also recognize that CLF has a P/B ratio of 2.40. The P/B ratio pits a stock's market value against 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 4.27. Over the past year, CLF's P/B has been as high as 4.49 and as low as 2.24, with a median of 2.91.
Another great Mining - Miscellaneous stock you could consider is Sibanye Gold Limited (SBSW - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Sibanye Gold Limited sports a P/B ratio of 1.71 as well; this compares to its industry's price-to-book ratio of 4.27. In the past 52 weeks, SBSW's P/B has been as high as 3.52, as low as 1.41, with a median of 2.11.
These are just a handful of the figures considered in ClevelandCliffs and Sibanye Gold Limited's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CLF and SBSW is an impressive value stock right now.