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Are Investors Undervaluing United States Steel (X) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
One stock to keep an eye on is United States Steel (X - Free Report) . X is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Investors should also recognize that X has a P/B ratio of 0.95. The P/B ratio is used to compare a stock's market value with 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 1.67. Within the past 52 weeks, X's P/B has been as high as 1 and as low as 0.45, with a median of 0.64.
Finally, investors should note that X has a P/CF ratio of 5.84. 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. X's current P/CF looks attractive when compared to its industry's average P/CF of 11.14. Within the past 12 months, X's P/CF has been as high as 6.21 and as low as 1.90, with a median of 3.58.
These figures are just a handful of the metrics value investors tend to look at, but they help show that United States Steel is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, X feels like a great value stock at the moment.
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Are Investors Undervaluing United States Steel (X) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
One stock to keep an eye on is United States Steel (X - Free Report) . X is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Investors should also recognize that X has a P/B ratio of 0.95. The P/B ratio is used to compare a stock's market value with 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 1.67. Within the past 52 weeks, X's P/B has been as high as 1 and as low as 0.45, with a median of 0.64.
Finally, investors should note that X has a P/CF ratio of 5.84. 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. X's current P/CF looks attractive when compared to its industry's average P/CF of 11.14. Within the past 12 months, X's P/CF has been as high as 6.21 and as low as 1.90, with a median of 3.58.
These figures are just a handful of the metrics value investors tend to look at, but they help show that United States Steel is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, X feels like a great value stock at the moment.