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Are Investors Undervaluing Ternium S.A. (TX) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is Ternium S.A. (TX - Free Report) . TX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.86. This compares to its industry's average Forward P/E of 20.66. Over the last 12 months, TX's Forward P/E has been as high as 8.98 and as low as 5.43, with a median of 6.36.
Another notable valuation metric for TX is its P/B ratio of 0.60. 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. TX's current P/B looks attractive when compared to its industry's average P/B of 1.13. TX's P/B has been as high as 0.85 and as low as 0.41, with a median of 0.57, over the past year.
Finally, our model also underscores that TX has a P/CF ratio of 3.09. 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. TX's P/CF compares to its industry's average P/CF of 8.71. Over the past 52 weeks, TX's P/CF has been as high as 3.12 and as low as 1.66, with a median of 2.54.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ternium S.A. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TX feels like a great value stock at the moment.
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Are Investors Undervaluing Ternium S.A. (TX) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is Ternium S.A. (TX - Free Report) . TX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.86. This compares to its industry's average Forward P/E of 20.66. Over the last 12 months, TX's Forward P/E has been as high as 8.98 and as low as 5.43, with a median of 6.36.
Another notable valuation metric for TX is its P/B ratio of 0.60. 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. TX's current P/B looks attractive when compared to its industry's average P/B of 1.13. TX's P/B has been as high as 0.85 and as low as 0.41, with a median of 0.57, over the past year.
Finally, our model also underscores that TX has a P/CF ratio of 3.09. 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. TX's P/CF compares to its industry's average P/CF of 8.71. Over the past 52 weeks, TX's P/CF has been as high as 3.12 and as low as 1.66, with a median of 2.54.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ternium S.A. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TX feels like a great value stock at the moment.