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Usinas Siderurgicas de Minas Gerais SA (USNZY) - free report >>
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Usinas Siderurgicas de Minas Gerais SA (USNZY) - free report >>
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Are These Basic Materials Stocks 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Ryerson (RYI - Free Report) . RYI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RYI has a P/S ratio of 0.16. This compares to its industry's average P/S of 0.37.
Finally, our model also underscores that RYI has a P/CF ratio of 3.93. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. RYI's current P/CF looks attractive when compared to its industry's average P/CF of 4.76. RYI's P/CF has been as high as 7.07 and as low as -249.47, with a median of 4.05, all within the past year.
Another great Steel - Producers stock you could consider is Usinas Siderurgicas de Minas Gerais (USNZY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Usinas Siderurgicas de Minas Gerais are currently trading at a forward earnings multiple of 5.61 and a PEG ratio of 0.30 compared to its industry's P/E and PEG ratios of 5.23 and 0.39, respectively.