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Are Investors Undervaluing Norsk Hydro ASA (NHYDY) 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.
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 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.
Norsk Hydro ASA (NHYDY - Free Report) is a stock many investors are watching right now. NHYDY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.68 right now. For comparison, its industry sports an average P/E of 11.16. NHYDY's Forward P/E has been as high as 12.40 and as low as 3.72, with a median of 5.72, all within the past year.
Another notable valuation metric for NHYDY is its P/B ratio of 1.32. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.83. Within the past 52 weeks, NHYDY's P/B has been as high as 2.09 and as low as 0.96, with a median of 1.30.
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. NHYDY has a P/S ratio of 0.68. This compares to its industry's average P/S of 0.69.
Finally, investors should note that NHYDY has a P/CF ratio of 4.28. 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 stock's P/CF looks attractive against its industry's average P/CF of 8.16. Over the past 52 weeks, NHYDY's P/CF has been as high as 9.05 and as low as 2.56, with a median of 3.97.
These are only a few of the key metrics included in Norsk Hydro ASA's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NHYDY looks like an impressive value stock at the moment.
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Are Investors Undervaluing Norsk Hydro ASA (NHYDY) 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.
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 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.
Norsk Hydro ASA (NHYDY - Free Report) is a stock many investors are watching right now. NHYDY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.68 right now. For comparison, its industry sports an average P/E of 11.16. NHYDY's Forward P/E has been as high as 12.40 and as low as 3.72, with a median of 5.72, all within the past year.
Another notable valuation metric for NHYDY is its P/B ratio of 1.32. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.83. Within the past 52 weeks, NHYDY's P/B has been as high as 2.09 and as low as 0.96, with a median of 1.30.
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. NHYDY has a P/S ratio of 0.68. This compares to its industry's average P/S of 0.69.
Finally, investors should note that NHYDY has a P/CF ratio of 4.28. 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 stock's P/CF looks attractive against its industry's average P/CF of 8.16. Over the past 52 weeks, NHYDY's P/CF has been as high as 9.05 and as low as 2.56, with a median of 3.97.
These are only a few of the key metrics included in Norsk Hydro ASA's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NHYDY looks like an impressive value stock at the moment.