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Are Investors Undervaluing Norsk Hydro ASA (NHYDY) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Norsk Hydro ASA (NHYDY - Free Report) . NHYDY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.31. This compares to its industry's average Forward P/E of 19.72. NHYDY's Forward P/E has been as high as 17.13 and as low as 7, with a median of 9.71, all within 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. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NHYDY has a P/S ratio of 0.67. This compares to its industry's average P/S of 0.87.
Finally, we should also recognize that NHYDY has a P/CF ratio of 7.58. 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. NHYDY's current P/CF looks attractive when compared to its industry's average P/CF of 28.90. NHYDY's P/CF has been as high as 8.66 and as low as 4.94, with a median of 7.30, all within the past year.
If you're looking for another solid Metal Products - Procurement and Fabrication value stock, take a look at AB SKF (SKFRY - Free Report) . SKFRY is a # 1 (Strong Buy) stock with a Value score of A.
AB SKF is currently trading with a Forward P/E ratio of 12.21 while its PEG ratio sits at 0.85. Both of the company's metrics compare favorably to its industry's average P/E of 19.72 and average PEG ratio of 0.67.
Over the last 12 months, SKFRY's P/E has been as high as 15.60, as low as 10.49, with a median of 12.84, and its PEG ratio has been as high as 1.04, as low as 0.47, with a median of 0.71.
Furthermore, AB SKF holds a P/B ratio of 1.74 and its industry's price-to-book ratio is 12.73. SKFRY's P/B has been as high as 1.94, as low as 1.31, with a median of 1.67 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Norsk Hydro ASA and AB SKF are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NHYDY and SKFRY feels like a great value stock at the moment.
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Are Investors Undervaluing Norsk Hydro ASA (NHYDY) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Norsk Hydro ASA (NHYDY - Free Report) . NHYDY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.31. This compares to its industry's average Forward P/E of 19.72. NHYDY's Forward P/E has been as high as 17.13 and as low as 7, with a median of 9.71, all within 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. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NHYDY has a P/S ratio of 0.67. This compares to its industry's average P/S of 0.87.
Finally, we should also recognize that NHYDY has a P/CF ratio of 7.58. 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. NHYDY's current P/CF looks attractive when compared to its industry's average P/CF of 28.90. NHYDY's P/CF has been as high as 8.66 and as low as 4.94, with a median of 7.30, all within the past year.
If you're looking for another solid Metal Products - Procurement and Fabrication value stock, take a look at AB SKF (SKFRY - Free Report) . SKFRY is a # 1 (Strong Buy) stock with a Value score of A.
AB SKF is currently trading with a Forward P/E ratio of 12.21 while its PEG ratio sits at 0.85. Both of the company's metrics compare favorably to its industry's average P/E of 19.72 and average PEG ratio of 0.67.
Over the last 12 months, SKFRY's P/E has been as high as 15.60, as low as 10.49, with a median of 12.84, and its PEG ratio has been as high as 1.04, as low as 0.47, with a median of 0.71.
Furthermore, AB SKF holds a P/B ratio of 1.74 and its industry's price-to-book ratio is 12.73. SKFRY's P/B has been as high as 1.94, as low as 1.31, with a median of 1.67 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Norsk Hydro ASA and AB SKF are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NHYDY and SKFRY feels like a great value stock at the moment.