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Is Ternium S.A. (TX) a Great Value Stock 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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is Ternium S.A. (TX - Free Report) . TX is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 3.57, while its industry has an average P/E of 5.94. Over the past year, TX's Forward P/E has been as high as 17.38 and as low as 3.57, with a median of 6.36.
We also note that TX holds a PEG ratio of 0.26. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TX's industry currently sports an average PEG of 0.44. Over the past 52 weeks, TX's PEG has been as high as 5.14 and as low as 0.26, with a median of 0.84.
Another notable valuation metric for TX is its P/B ratio of 0.76. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.89. Over the past year, TX's P/B has been as high as 0.91 and as low as 0.37, with a median of 0.68.
Finally, investors will want to recognize that TX has a P/CF ratio of 3.36. 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 11. TX's P/CF has been as high as 6.78 and as low as 2.76, with a median of 4.09, all within the past year.
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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Is Ternium S.A. (TX) a Great Value Stock 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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is Ternium S.A. (TX - Free Report) . TX is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 3.57, while its industry has an average P/E of 5.94. Over the past year, TX's Forward P/E has been as high as 17.38 and as low as 3.57, with a median of 6.36.
We also note that TX holds a PEG ratio of 0.26. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TX's industry currently sports an average PEG of 0.44. Over the past 52 weeks, TX's PEG has been as high as 5.14 and as low as 0.26, with a median of 0.84.
Another notable valuation metric for TX is its P/B ratio of 0.76. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.89. Over the past year, TX's P/B has been as high as 0.91 and as low as 0.37, with a median of 0.68.
Finally, investors will want to recognize that TX has a P/CF ratio of 3.36. 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 11. TX's P/CF has been as high as 6.78 and as low as 2.76, with a median of 4.09, all within the past year.
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.