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Should Value Investors Buy Ternium S.A. (TX) Stock?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 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 holds a P/E ratio of 5.81, while its industry has an average P/E of 6.64. TX's Forward P/E has been as high as 10.39 and as low as 4.71, with a median of 8.46, all within the past year.
Another valuation metric that we should highlight is TX's P/B ratio of 1.03. 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 1.44. TX's P/B has been as high as 1.36 and as low as 0.85, with a median of 1.13, over the past year.
Finally, we should also recognize that TX has a P/CF ratio of 3.75. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TX's P/CF compares to its industry's average P/CF of 7.85. Within the past 12 months, TX's P/CF has been as high as 5.49 and as low as 3.11, with a median of 4.69.
These are only a few of the key metrics included in Ternium S.A.'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, TX looks like an impressive value stock at the moment.
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Should Value Investors Buy Ternium S.A. (TX) Stock?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 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 holds a P/E ratio of 5.81, while its industry has an average P/E of 6.64. TX's Forward P/E has been as high as 10.39 and as low as 4.71, with a median of 8.46, all within the past year.
Another valuation metric that we should highlight is TX's P/B ratio of 1.03. 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 1.44. TX's P/B has been as high as 1.36 and as low as 0.85, with a median of 1.13, over the past year.
Finally, we should also recognize that TX has a P/CF ratio of 3.75. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TX's P/CF compares to its industry's average P/CF of 7.85. Within the past 12 months, TX's P/CF has been as high as 5.49 and as low as 3.11, with a median of 4.69.
These are only a few of the key metrics included in Ternium S.A.'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, TX looks like an impressive value stock at the moment.