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Are Investors Undervaluing Outokumpu (OUTKY) Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Outokumpu (OUTKY - Free Report) . OUTKY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 3.67, which compares to its industry's average of 3.83. Over the past year, OUTKY's Forward P/E has been as high as 8.84 and as low as 3.21, with a median of 4.35.
Investors should also recognize that OUTKY has a P/B ratio of 0.68. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.04. OUTKY's P/B has been as high as 0.98 and as low as 0.62, with a median of 0.77, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OUTKY has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.28.
Finally, investors should note that OUTKY has a P/CF ratio of 2.44. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 3.54. OUTKY's P/CF has been as high as 10.44 and as low as 2.23, with a median of 3.60, all within the past year.
Another great Steel - Producers stock you could consider is Ryerson (RYI - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Ryerson also has a P/B ratio of 1.17 compared to its industry's price-to-book ratio of 1.04. Over the past year, its P/B ratio has been as high as 3.38, as low as 1.17, with a median of 2.06.
These are just a handful of the figures considered in Outokumpu and Ryerson'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 OUTKY and RYI is an impressive value stock right now.
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Are Investors Undervaluing Outokumpu (OUTKY) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Outokumpu (OUTKY - Free Report) . OUTKY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 3.67, which compares to its industry's average of 3.83. Over the past year, OUTKY's Forward P/E has been as high as 8.84 and as low as 3.21, with a median of 4.35.
Investors should also recognize that OUTKY has a P/B ratio of 0.68. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.04. OUTKY's P/B has been as high as 0.98 and as low as 0.62, with a median of 0.77, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OUTKY has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.28.
Finally, investors should note that OUTKY has a P/CF ratio of 2.44. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 3.54. OUTKY's P/CF has been as high as 10.44 and as low as 2.23, with a median of 3.60, all within the past year.
Another great Steel - Producers stock you could consider is Ryerson (RYI - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Ryerson also has a P/B ratio of 1.17 compared to its industry's price-to-book ratio of 1.04. Over the past year, its P/B ratio has been as high as 3.38, as low as 1.17, with a median of 2.06.
These are just a handful of the figures considered in Outokumpu and Ryerson'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 OUTKY and RYI is an impressive value stock right now.