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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Salzgitter (SZGPY - Free Report) . SZGPY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 4.54 right now. For comparison, its industry sports an average P/E of 5.47. Over the last 12 months, SZGPY's Forward P/E has been as high as 8.12 and as low as 2.64, with a median of 4.54.
Another valuation metric that we should highlight is SZGPY's P/B ratio of 0.60. 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. This stock's P/B looks attractive against its industry's average P/B of 1.37. Over the past year, SZGPY's P/B has been as high as 0.69 and as low as 0.46, with a median of 0.56.
Usinas Siderurgicas de Minas Gerais (USNZY - Free Report) may be another strong Steel - Producers stock to add to your shortlist. USNZY is a # 2 (Buy) stock with a Value grade of A.
Usinas Siderurgicas de Minas Gerais is currently trading with a Forward P/E ratio of 5.26 while its PEG ratio sits at 0.32. Both of the company's metrics compare favorably to its industry's average P/E of 5.47 and average PEG ratio of 0.41.
USNZY's price-to-earnings ratio has been as high as 12.63 and as low as 2.20, with a median of 6.19, while its PEG ratio has been as high as 0.48 and as low as 0.08, with a median of 0.23, all within the past year.
Furthermore, Usinas Siderurgicas de Minas Gerais holds a P/B ratio of 0.39 and its industry's price-to-book ratio is 1.37. USNZY's P/B has been as high as 0.71, as low as 0.27, with a median of 0.41 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Salzgitter and Usinas Siderurgicas de Minas Gerais are likely undervalued currently. And when considering the strength of its earnings outlook, SZGPY and USNZY sticks out as one of the market's strongest value stocks.
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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Salzgitter (SZGPY - Free Report) . SZGPY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 4.54 right now. For comparison, its industry sports an average P/E of 5.47. Over the last 12 months, SZGPY's Forward P/E has been as high as 8.12 and as low as 2.64, with a median of 4.54.
Another valuation metric that we should highlight is SZGPY's P/B ratio of 0.60. 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. This stock's P/B looks attractive against its industry's average P/B of 1.37. Over the past year, SZGPY's P/B has been as high as 0.69 and as low as 0.46, with a median of 0.56.
Usinas Siderurgicas de Minas Gerais (USNZY - Free Report) may be another strong Steel - Producers stock to add to your shortlist. USNZY is a # 2 (Buy) stock with a Value grade of A.
Usinas Siderurgicas de Minas Gerais is currently trading with a Forward P/E ratio of 5.26 while its PEG ratio sits at 0.32. Both of the company's metrics compare favorably to its industry's average P/E of 5.47 and average PEG ratio of 0.41.
USNZY's price-to-earnings ratio has been as high as 12.63 and as low as 2.20, with a median of 6.19, while its PEG ratio has been as high as 0.48 and as low as 0.08, with a median of 0.23, all within the past year.
Furthermore, Usinas Siderurgicas de Minas Gerais holds a P/B ratio of 0.39 and its industry's price-to-book ratio is 1.37. USNZY's P/B has been as high as 0.71, as low as 0.27, with a median of 0.41 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Salzgitter and Usinas Siderurgicas de Minas Gerais are likely undervalued currently. And when considering the strength of its earnings outlook, SZGPY and USNZY sticks out as one of the market's strongest value stocks.