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Are Investors Undervaluing These Basic Materials Stocks Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Schnitzer Steel Industries . SCHN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that SCHN has a P/B ratio of 1.51. 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. This stock's P/B looks solid versus its industry's average P/B of 1.64. Within the past 52 weeks, SCHN's P/B has been as high as 2.11 and as low as 1.15, with a median of 1.65.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SCHN has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.49.
Finally, we should also recognize that SCHN has a P/CF ratio of 6.16. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.90. Over the past 52 weeks, SCHN's P/CF has been as high as 14.72 and as low as 5.23, with a median of 8.18.
If you're looking for another solid Steel - Producers value stock, take a look at United States Steel (X - Free Report) . X is a # 2 (Buy) stock with a Value score of A.
Shares of United States Steel are currently trading at a forward earnings multiple of 1.67 and a PEG ratio of 0.47 compared to its industry's P/E and PEG ratios of 5.20 and 0.42, respectively.
X's price-to-earnings ratio has been as high as 79.88 and as low as 1.60, with a median of 3.89, while its PEG ratio has been as high as 9.99 and as low as 0.42, with a median of 0.78, all within the past year.
United States Steel also has a P/B ratio of 0.84 compared to its industry's price-to-book ratio of 1.64. Over the past year, its P/B ratio has been as high as 1.65, as low as 0.69, with a median of 1.11.
These are just a handful of the figures considered in Schnitzer Steel Industries and United States 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 SCHN and X is an impressive value stock right now.
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Are Investors Undervaluing These Basic Materials Stocks Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Schnitzer Steel Industries . SCHN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that SCHN has a P/B ratio of 1.51. 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. This stock's P/B looks solid versus its industry's average P/B of 1.64. Within the past 52 weeks, SCHN's P/B has been as high as 2.11 and as low as 1.15, with a median of 1.65.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SCHN has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.49.
Finally, we should also recognize that SCHN has a P/CF ratio of 6.16. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.90. Over the past 52 weeks, SCHN's P/CF has been as high as 14.72 and as low as 5.23, with a median of 8.18.
If you're looking for another solid Steel - Producers value stock, take a look at United States Steel (X - Free Report) . X is a # 2 (Buy) stock with a Value score of A.
Shares of United States Steel are currently trading at a forward earnings multiple of 1.67 and a PEG ratio of 0.47 compared to its industry's P/E and PEG ratios of 5.20 and 0.42, respectively.
X's price-to-earnings ratio has been as high as 79.88 and as low as 1.60, with a median of 3.89, while its PEG ratio has been as high as 9.99 and as low as 0.42, with a median of 0.78, all within the past year.
United States Steel also has a P/B ratio of 0.84 compared to its industry's price-to-book ratio of 1.64. Over the past year, its P/B ratio has been as high as 1.65, as low as 0.69, with a median of 1.11.
These are just a handful of the figures considered in Schnitzer Steel Industries and United States 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 SCHN and X is an impressive value stock right now.