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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Ternium S.A. (TX - Free Report) . TX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.07, while its industry has an average P/E of 5.42. Over the past 52 weeks, TX's Forward P/E has been as high as 15.38 and as low as 3.40, with a median of 6.13.
We also note that TX holds a PEG ratio of 0.30. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TX's PEG compares to its industry's average PEG of 0.38. Over the past 52 weeks, TX's PEG has been as high as 4.56 and as low as 0.25, with a median of 0.82.
Another notable valuation metric for TX is its P/B ratio of 0.85. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. TX's current P/B looks attractive when compared to its industry's average P/B of 1.91. Within the past 52 weeks, TX's P/B has been as high as 0.91 and as low as 0.37, with a median of 0.68.
Finally, we should also recognize that TX has a P/CF ratio of 3.76. 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 11.09. Over the past year, TX's P/CF has been as high as 6.78 and as low as 2.84, with a median of 4.09.
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) Stock Undervalued 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Ternium S.A. (TX - Free Report) . TX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.07, while its industry has an average P/E of 5.42. Over the past 52 weeks, TX's Forward P/E has been as high as 15.38 and as low as 3.40, with a median of 6.13.
We also note that TX holds a PEG ratio of 0.30. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TX's PEG compares to its industry's average PEG of 0.38. Over the past 52 weeks, TX's PEG has been as high as 4.56 and as low as 0.25, with a median of 0.82.
Another notable valuation metric for TX is its P/B ratio of 0.85. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. TX's current P/B looks attractive when compared to its industry's average P/B of 1.91. Within the past 52 weeks, TX's P/B has been as high as 0.91 and as low as 0.37, with a median of 0.68.
Finally, we should also recognize that TX has a P/CF ratio of 3.76. 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 11.09. Over the past year, TX's P/CF has been as high as 6.78 and as low as 2.84, with a median of 4.09.
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.