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Is Norsk Hydro ASA (NHYDY) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Norsk Hydro ASA (NHYDY - Free Report) . NHYDY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 4.82, while its industry has an average P/E of 9.86. Over the past year, NHYDY's Forward P/E has been as high as 12.74 and as low as 4.82, with a median of 7.25.

NHYDY is also sporting a PEG ratio of 0.68. 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. NHYDY's PEG compares to its industry's average PEG of 0.82. Over the last 12 months, NHYDY's PEG has been as high as 2.73 and as low as 0.23, with a median of 0.83.

Finally, investors will want to recognize that NHYDY has a P/CF ratio of 7.18. 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. NHYDY's current P/CF looks attractive when compared to its industry's average P/CF of 11.46. Within the past 12 months, NHYDY's P/CF has been as high as 9.20 and as low as 5.82, with a median of 7.14.

Another great Metal Products - Procurement and Fabrication stock you could consider is Worthington Industries (WOR - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Worthington Industries sports a P/B ratio of 1.52 as well; this compares to its industry's price-to-book ratio of 5.27. In the past 52 weeks, WOR's P/B has been as high as 2.54, as low as 1.49, with a median of 1.77.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Norsk Hydro ASA and Worthington Industries are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NHYDY and WOR feels like a great value stock at the moment.


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