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Are These Basic Materials Stocks a Great Value Stocks Right Now?
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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, 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 to watch right now is Outokumpu (OUTKY - Free Report) . OUTKY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that OUTKY has a P/B ratio of 0.77. 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 stock's P/B looks attractive against its industry's average P/B of 1.51. Over the past year, OUTKY's P/B has been as high as 0.98 and as low as 0.58, with a median of 0.81.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OUTKY has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.49.
Finally, we should also recognize that OUTKY has a P/CF ratio of 3.85. 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 stock's P/CF looks attractive against its industry's average P/CF of 10.45. OUTKY's P/CF has been as high as 16.05 and as low as 3.60, with a median of 9.80, all within the past year.
Investors could also keep in mind United States Steel (X - Free Report) , an Steel - Producers stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of United States Steel currently holds a Forward P/E ratio of 2.54, and its PEG ratio is 0.47. In comparison, its industry sports average P/E and PEG ratios of 4.02 and 0.33.
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 0.77, all within the past year.
United States Steel also has a P/B ratio of 0.79 compared to its industry's price-to-book ratio of 1.51. Over the past year, its P/B ratio has been as high as 1.65, as low as 0.69, with a median of 1.11.
Value investors will likely look at more than just these metrics, but the above data helps show that Outokumpu and United States Steel are likely undervalued currently. And when considering the strength of its earnings outlook, OUTKY and X sticks out as one of the market's strongest value stocks.
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Are These Basic Materials Stocks a Great Value Stocks 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, 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 to watch right now is Outokumpu (OUTKY - Free Report) . OUTKY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that OUTKY has a P/B ratio of 0.77. 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 stock's P/B looks attractive against its industry's average P/B of 1.51. Over the past year, OUTKY's P/B has been as high as 0.98 and as low as 0.58, with a median of 0.81.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OUTKY has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.49.
Finally, we should also recognize that OUTKY has a P/CF ratio of 3.85. 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 stock's P/CF looks attractive against its industry's average P/CF of 10.45. OUTKY's P/CF has been as high as 16.05 and as low as 3.60, with a median of 9.80, all within the past year.
Investors could also keep in mind United States Steel (X - Free Report) , an Steel - Producers stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of United States Steel currently holds a Forward P/E ratio of 2.54, and its PEG ratio is 0.47. In comparison, its industry sports average P/E and PEG ratios of 4.02 and 0.33.
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 0.77, all within the past year.
United States Steel also has a P/B ratio of 0.79 compared to its industry's price-to-book ratio of 1.51. Over the past year, its P/B ratio has been as high as 1.65, as low as 0.69, with a median of 1.11.
Value investors will likely look at more than just these metrics, but the above data helps show that Outokumpu and United States Steel are likely undervalued currently. And when considering the strength of its earnings outlook, OUTKY and X sticks out as one of the market's strongest value stocks.