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Should Value Investors Buy These Industrial Products 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is GrafTech International (EAF - Free Report) . EAF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 5.71, which compares to its industry's average of 8.09. Over the past 52 weeks, EAF's Forward P/E has been as high as 9.45 and as low as 5.52, with a median of 6.79.
Finally, our model also underscores that EAF has a P/CF ratio of 5.76. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.75. EAF's P/CF has been as high as 8.11 and as low as 5.58, with a median of 6.93, all within the past year.
Norsk Hydro ASA (NHYDY - Free Report) may be another strong Metal Products - Procurement and Fabrication stock to add to your shortlist. NHYDY is a # 2 (Buy) stock with a Value grade of A.
Over the last 12 months, NHYDY's P/E has been as high as 19.16, as low as 5.68, with a median of 8.31, and its PEG ratio has been as high as 3.67, as low as 0.23, with a median of 1.02.
Norsk Hydro ASA also has a P/B ratio of 1.97 compared to its industry's price-to-book ratio of 6.78. Over the past year, its P/B ratio has been as high as 1.98, as low as 1.22, with a median of 1.51.
These figures are just a handful of the metrics value investors tend to look at, but they help show that GrafTech International and Norsk Hydro ASA are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EAF and NHYDY feels like a great value stock at the moment.
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Should Value Investors Buy These Industrial Products 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is GrafTech International (EAF - Free Report) . EAF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 5.71, which compares to its industry's average of 8.09. Over the past 52 weeks, EAF's Forward P/E has been as high as 9.45 and as low as 5.52, with a median of 6.79.
Finally, our model also underscores that EAF has a P/CF ratio of 5.76. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.75. EAF's P/CF has been as high as 8.11 and as low as 5.58, with a median of 6.93, all within the past year.
Norsk Hydro ASA (NHYDY - Free Report) may be another strong Metal Products - Procurement and Fabrication stock to add to your shortlist. NHYDY is a # 2 (Buy) stock with a Value grade of A.
Over the last 12 months, NHYDY's P/E has been as high as 19.16, as low as 5.68, with a median of 8.31, and its PEG ratio has been as high as 3.67, as low as 0.23, with a median of 1.02.
Norsk Hydro ASA also has a P/B ratio of 1.97 compared to its industry's price-to-book ratio of 6.78. Over the past year, its P/B ratio has been as high as 1.98, as low as 1.22, with a median of 1.51.
These figures are just a handful of the metrics value investors tend to look at, but they help show that GrafTech International and Norsk Hydro ASA are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EAF and NHYDY feels like a great value stock at the moment.