Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Schnitzer Steel Industries . SCHN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Another valuation metric that we should highlight is SCHN's P/B ratio of 1.53. The P/B ratio pits a stock's market value against 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 1.57. Within the past 52 weeks, SCHN's P/B has been as high as 2.11 and as low as 1.01, with a median of 1.61.
Finally, investors should note that SCHN has a P/CF ratio of 6.23. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SCHN's current P/CF looks attractive when compared to its industry's average P/CF of 9.48. SCHN's P/CF has been as high as 14.72 and as low as 5.23, with a median of 9.15, all within the past year.
Timken Steel may be another strong Steel - Producers stock to add to your shortlist. TMST is a # 1 (Strong Buy) stock with a Value grade of A.
Timken Steel sports a P/B ratio of 1.05 as well; this compares to its industry's price-to-book ratio of 1.57. In the past 52 weeks, TMST's P/B has been as high as 1.42, as low as 0.41, with a median of 1.04.
Value investors will likely look at more than just these metrics, but the above data helps show that Schnitzer Steel Industries and Timken Steel are likely undervalued currently. And when considering the strength of its earnings outlook, SCHN and TMST sticks out as one of the market's strongest value stocks.
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Are These Basic Materials Stocks Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Schnitzer Steel Industries . SCHN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Another valuation metric that we should highlight is SCHN's P/B ratio of 1.53. The P/B ratio pits a stock's market value against 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 1.57. Within the past 52 weeks, SCHN's P/B has been as high as 2.11 and as low as 1.01, with a median of 1.61.
Finally, investors should note that SCHN has a P/CF ratio of 6.23. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SCHN's current P/CF looks attractive when compared to its industry's average P/CF of 9.48. SCHN's P/CF has been as high as 14.72 and as low as 5.23, with a median of 9.15, all within the past year.
Timken Steel may be another strong Steel - Producers stock to add to your shortlist. TMST is a # 1 (Strong Buy) stock with a Value grade of A.
Timken Steel sports a P/B ratio of 1.05 as well; this compares to its industry's price-to-book ratio of 1.57. In the past 52 weeks, TMST's P/B has been as high as 1.42, as low as 0.41, with a median of 1.04.
Value investors will likely look at more than just these metrics, but the above data helps show that Schnitzer Steel Industries and Timken Steel are likely undervalued currently. And when considering the strength of its earnings outlook, SCHN and TMST sticks out as one of the market's strongest value stocks.