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Should Value Investors Buy Usinas Siderurgicas de Minas Gerais (USNZY) Stock?
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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 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.
Usinas Siderurgicas de Minas Gerais (USNZY - Free Report) is a stock many investors are watching right now. USNZY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors will also notice that USNZY has a PEG ratio of 0.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. USNZY's PEG compares to its industry's average PEG of 0.72. Within the past year, USNZY's PEG has been as high as 0.71 and as low as 0.08, with a median of 0.28.
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. USNZY has a P/S ratio of 0.12. This compares to its industry's average P/S of 0.26.
Finally, investors will want to recognize that USNZY has a P/CF ratio of 1.65. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 3.69. Within the past 12 months, USNZY's P/CF has been as high as 2.25 and as low as 1.10, with a median of 1.77.
Another great Steel - Producers stock you could consider is Olympic Steel (ZEUS - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Olympic Steel sports a P/B ratio of 0.71 as well; this compares to its industry's price-to-book ratio of 1.28. In the past 52 weeks, ZEUS's P/B has been as high as 1.02, as low as 0.50, with a median of 0.65.
These are just a handful of the figures considered in Usinas Siderurgicas de Minas Gerais and Olympic Steel'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 USNZY and ZEUS is an impressive value stock right now.
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Should Value Investors Buy Usinas Siderurgicas de Minas Gerais (USNZY) Stock?
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 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.
Usinas Siderurgicas de Minas Gerais (USNZY - Free Report) is a stock many investors are watching right now. USNZY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors will also notice that USNZY has a PEG ratio of 0.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. USNZY's PEG compares to its industry's average PEG of 0.72. Within the past year, USNZY's PEG has been as high as 0.71 and as low as 0.08, with a median of 0.28.
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. USNZY has a P/S ratio of 0.12. This compares to its industry's average P/S of 0.26.
Finally, investors will want to recognize that USNZY has a P/CF ratio of 1.65. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 3.69. Within the past 12 months, USNZY's P/CF has been as high as 2.25 and as low as 1.10, with a median of 1.77.
Another great Steel - Producers stock you could consider is Olympic Steel (ZEUS - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Olympic Steel sports a P/B ratio of 0.71 as well; this compares to its industry's price-to-book ratio of 1.28. In the past 52 weeks, ZEUS's P/B has been as high as 1.02, as low as 0.50, with a median of 0.65.
These are just a handful of the figures considered in Usinas Siderurgicas de Minas Gerais and Olympic Steel'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 USNZY and ZEUS is an impressive value stock right now.