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Is Ryerson (RYI) Stock Undervalued Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Ryerson (RYI - Free Report) . RYI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 2.60 right now. For comparison, its industry sports an average P/E of 3.88. RYI's Forward P/E has been as high as 12.28 and as low as 2.51, with a median of 7.71, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RYI has a P/S ratio of 0.17. This compares to its industry's average P/S of 0.33.

United States Steel (X - Free Report) may be another strong Steel - Producers stock to add to your shortlist. X is a # 1 (Strong Buy) stock with a Value grade of A.

Shares of United States Steel currently holds a Forward P/E ratio of 2.75, and its PEG ratio is 0.47. In comparison, its industry sports average P/E and PEG ratios of 3.88 and 0.29.


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