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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Ternium (TX - Free Report) is a stock many investors are watching right now. TX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 3.67 right now. For comparison, its industry sports an average P/E of 3.83. Over the past year, TX's Forward P/E has been as high as 5.97 and as low as 2.32, with a median of 3.99.
Investors should also note that TX holds a PEG ratio of 0.22. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TX's PEG compares to its industry's average PEG of 0.29. Over the last 12 months, TX's PEG has been as high as 0.30 and as low as 0.13, with a median of 0.22.
Another valuation metric that we should highlight is TX's P/B ratio of 0.61. 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 solid versus its industry's average P/B of 1.17. Over the past 12 months, TX's P/B has been as high as 1.13 and as low as 0.59, with a median of 0.75.
Finally, investors will want to recognize that TX has a P/CF ratio of 1.74. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TX's current P/CF looks attractive when compared to its industry's average P/CF of 3.98. Within the past 12 months, TX's P/CF has been as high as 3.78 and as low as 1.63, with a median of 2.01.
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.
United States Steel is trading at a forward earnings multiple of 2.56 at the moment, with a PEG ratio of 0.47. This compares to its industry's average P/E of 3.83 and average PEG ratio of 0.29.
X's Forward P/E has been as high as 6.17 and as low as 1.60, with a median of 3.61. During the same time period, its PEG ratio has been as high as 0.77, as low as 0.42, with a median of 0.48.
United States Steel also has a P/B ratio of 0.60 compared to its industry's price-to-book ratio of 1.17. Over the past year, its P/B ratio has been as high as 1.64, as low as 0.55, with a median of 0.86.
Value investors will likely look at more than just these metrics, but the above data helps show that Ternium and United States Steel are likely undervalued currently. And when considering the strength of its earnings outlook, TX and X sticks out as one of the market's strongest value stocks.
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Is Ternium (TX) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Ternium (TX - Free Report) is a stock many investors are watching right now. TX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 3.67 right now. For comparison, its industry sports an average P/E of 3.83. Over the past year, TX's Forward P/E has been as high as 5.97 and as low as 2.32, with a median of 3.99.
Investors should also note that TX holds a PEG ratio of 0.22. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TX's PEG compares to its industry's average PEG of 0.29. Over the last 12 months, TX's PEG has been as high as 0.30 and as low as 0.13, with a median of 0.22.
Another valuation metric that we should highlight is TX's P/B ratio of 0.61. 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 solid versus its industry's average P/B of 1.17. Over the past 12 months, TX's P/B has been as high as 1.13 and as low as 0.59, with a median of 0.75.
Finally, investors will want to recognize that TX has a P/CF ratio of 1.74. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TX's current P/CF looks attractive when compared to its industry's average P/CF of 3.98. Within the past 12 months, TX's P/CF has been as high as 3.78 and as low as 1.63, with a median of 2.01.
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.
United States Steel is trading at a forward earnings multiple of 2.56 at the moment, with a PEG ratio of 0.47. This compares to its industry's average P/E of 3.83 and average PEG ratio of 0.29.
X's Forward P/E has been as high as 6.17 and as low as 1.60, with a median of 3.61. During the same time period, its PEG ratio has been as high as 0.77, as low as 0.42, with a median of 0.48.
United States Steel also has a P/B ratio of 0.60 compared to its industry's price-to-book ratio of 1.17. Over the past year, its P/B ratio has been as high as 1.64, as low as 0.55, with a median of 0.86.
Value investors will likely look at more than just these metrics, but the above data helps show that Ternium and United States Steel are likely undervalued currently. And when considering the strength of its earnings outlook, TX and X sticks out as one of the market's strongest value stocks.