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Are These Basic Materials Stocks Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Gerdau (GGB - Free Report) is a stock many investors are watching right now. GGB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Investors should also note that GGB holds a PEG ratio of 0.34. 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. GGB's industry has an average PEG of 0.39 right now. Over the past 52 weeks, GGB's PEG has been as high as 0.87 and as low as 0.27, with a median of 0.36.
Another notable valuation metric for GGB is its P/B ratio of 1.03. 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. GGB's current P/B looks attractive when compared to its industry's average P/B of 1.51. Over the past 12 months, GGB's P/B has been as high as 1.97 and as low as 0.93, with a median of 1.37.
Finally, investors should note that GGB has a P/CF ratio of 2.72. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.43. GGB's P/CF has been as high as 10.80 and as low as 2.44, with a median of 6.85, all within the past year.
Another great Steel - Producers stock you could consider is United States Steel (X - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
United States Steel is trading at a forward earnings multiple of 2.51 at the moment, with a PEG ratio of 0.47. This compares to its industry's average P/E of 4.86 and average PEG ratio of 0.39.
X's price-to-earnings ratio has been as high as 79.88 and as low as -271.94, with a median of 3.91, while its PEG ratio has been as high as 9.99 and as low as -33.99, with a median of 0.76, all within the past year.
United States Steel sports a P/B ratio of 0.78 as well; this compares to its industry's price-to-book ratio of 1.51. In the past 52 weeks, X's P/B has been as high as 1.65, as low as 0.69, with a median of 1.11.
These are only a few of the key metrics included in Gerdau and United States Steel strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GGB and X look like an impressive value stock at the moment.
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Are These Basic Materials Stocks 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Gerdau (GGB - Free Report) is a stock many investors are watching right now. GGB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Investors should also note that GGB holds a PEG ratio of 0.34. 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. GGB's industry has an average PEG of 0.39 right now. Over the past 52 weeks, GGB's PEG has been as high as 0.87 and as low as 0.27, with a median of 0.36.
Another notable valuation metric for GGB is its P/B ratio of 1.03. 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. GGB's current P/B looks attractive when compared to its industry's average P/B of 1.51. Over the past 12 months, GGB's P/B has been as high as 1.97 and as low as 0.93, with a median of 1.37.
Finally, investors should note that GGB has a P/CF ratio of 2.72. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.43. GGB's P/CF has been as high as 10.80 and as low as 2.44, with a median of 6.85, all within the past year.
Another great Steel - Producers stock you could consider is United States Steel (X - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
United States Steel is trading at a forward earnings multiple of 2.51 at the moment, with a PEG ratio of 0.47. This compares to its industry's average P/E of 4.86 and average PEG ratio of 0.39.
X's price-to-earnings ratio has been as high as 79.88 and as low as -271.94, with a median of 3.91, while its PEG ratio has been as high as 9.99 and as low as -33.99, with a median of 0.76, all within the past year.
United States Steel sports a P/B ratio of 0.78 as well; this compares to its industry's price-to-book ratio of 1.51. In the past 52 weeks, X's P/B has been as high as 1.65, as low as 0.69, with a median of 1.11.
These are only a few of the key metrics included in Gerdau and United States Steel strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GGB and X look like an impressive value stock at the moment.