We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Norsk Hydro ASA (NHYDY) Stock?
Read MoreHide Full Article
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 company value investors might notice 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 is trading with a P/E ratio of 10.04, which compares to its industry's average of 25.16. NHYDY's Forward P/E has been as high as 17.13 and as low as 5.72, with a median of 8.91, all within the past year.
We also note that NHYDY holds a PEG ratio of 0.65. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NHYDY's industry currently sports an average PEG of 1.03. Over the last 12 months, NHYDY's PEG has been as high as 2.56 and as low as 0.40, with a median of 1.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.7. This compares to its industry's average P/S of 0.71.
Finally, investors will want to recognize that NHYDY has a P/CF ratio of 7.79. 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 29.17. Over the past year, NHYDY's P/CF has been as high as 8.84 and as low as 4.02, with a median of 6.38.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy Norsk Hydro ASA (NHYDY) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 company value investors might notice 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 is trading with a P/E ratio of 10.04, which compares to its industry's average of 25.16. NHYDY's Forward P/E has been as high as 17.13 and as low as 5.72, with a median of 8.91, all within the past year.
We also note that NHYDY holds a PEG ratio of 0.65. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NHYDY's industry currently sports an average PEG of 1.03. Over the last 12 months, NHYDY's PEG has been as high as 2.56 and as low as 0.40, with a median of 1.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.7. This compares to its industry's average P/S of 0.71.
Finally, investors will want to recognize that NHYDY has a P/CF ratio of 7.79. 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 29.17. Over the past year, NHYDY's P/CF has been as high as 8.84 and as low as 4.02, with a median of 6.38.
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.