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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 company value investors might notice is Ryerson (RYI - Free Report) . RYI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for RYI is its P/B ratio of 1.13. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. RYI's current P/B looks attractive when compared to its industry's average P/B of 1.69. RYI's P/B has been as high as 1.77 and as low as 1.02, with a median of 1.38, over 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RYI has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.44.
Finally, investors should note that RYI has a P/CF ratio of 6.66. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.33. RYI's P/CF has been as high as 8.91 and as low as 1.90, with a median of 4.32, all within the past year.
United States Steel (X - Free Report) may be another strong Steel - Producers stock to add to your shortlist. X is a # 2 (Buy) stock with a Value grade of A.
United States Steel also has a P/B ratio of 0.72 compared to its industry's price-to-book ratio of 1.69. Over the past year, its P/B ratio has been as high as 0.73, as low as 0.45, with a median of 0.59.
These are only a few of the key metrics included in Ryerson and United States Steel strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, RYI and X look like an impressive value stock at the moment.
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Should Value Investors Buy Ryerson (RYI) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 company value investors might notice is Ryerson (RYI - Free Report) . RYI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for RYI is its P/B ratio of 1.13. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. RYI's current P/B looks attractive when compared to its industry's average P/B of 1.69. RYI's P/B has been as high as 1.77 and as low as 1.02, with a median of 1.38, over 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RYI has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.44.
Finally, investors should note that RYI has a P/CF ratio of 6.66. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.33. RYI's P/CF has been as high as 8.91 and as low as 1.90, with a median of 4.32, all within the past year.
United States Steel (X - Free Report) may be another strong Steel - Producers stock to add to your shortlist. X is a # 2 (Buy) stock with a Value grade of A.
United States Steel also has a P/B ratio of 0.72 compared to its industry's price-to-book ratio of 1.69. Over the past year, its P/B ratio has been as high as 0.73, as low as 0.45, with a median of 0.59.
These are only a few of the key metrics included in Ryerson and United States Steel strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, RYI and X look like an impressive value stock at the moment.