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.
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.
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 to watch right now is Gerdau (GGB - Free Report) . GGB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
GGB is also sporting a PEG ratio of 0.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GGB's PEG compares to its industry's average PEG of 0.33. GGB's PEG has been as high as 1.08 and as low as 0.28, with a median of 0.42, all within the past year.
Another notable valuation metric for GGB is its P/B ratio of 1.32. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.73. Over the past 12 months, GGB's P/B has been as high as 1.97 and as low as 1.06, with a median of 1.38.
Finally, investors will want to recognize that GGB has a P/CF ratio of 4.36. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.19. Within the past 12 months, GGB's P/CF has been as high as 11.14 and as low as 4.19, with a median of 8.41.
These are only a few of the key metrics included in Gerdau'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, GGB 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
Is Gerdau (GGB) Stock Undervalued 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.
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 to watch right now is Gerdau (GGB - Free Report) . GGB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
GGB is also sporting a PEG ratio of 0.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GGB's PEG compares to its industry's average PEG of 0.33. GGB's PEG has been as high as 1.08 and as low as 0.28, with a median of 0.42, all within the past year.
Another notable valuation metric for GGB is its P/B ratio of 1.32. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.73. Over the past 12 months, GGB's P/B has been as high as 1.97 and as low as 1.06, with a median of 1.38.
Finally, investors will want to recognize that GGB has a P/CF ratio of 4.36. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.19. Within the past 12 months, GGB's P/CF has been as high as 11.14 and as low as 4.19, with a median of 8.41.
These are only a few of the key metrics included in Gerdau'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, GGB looks like an impressive value stock at the moment.