Back to top

Image: Bigstock

Is ClevelandCliffs (CLF) Stock Undervalued Right Now?

Read MoreHide Full Article

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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company to watch right now is ClevelandCliffs (CLF - Free Report) . CLF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.26 right now. For comparison, its industry sports an average P/E of 8.43. CLF's Forward P/E has been as high as 7.32 and as low as 2.98, with a median of 5.54, all within the past year.

Finally, investors should note that CLF has a P/CF ratio of 2.98. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.82. Within the past 12 months, CLF's P/CF has been as high as 22.41 and as low as 2.12, with a median of 3.91.

U.S. Silica Holdings (SLCA - Free Report) may be another strong Mining - Miscellaneous stock to add to your shortlist. SLCA is a # 2 (Buy) stock with a Value grade of A.

U.S. Silica Holdings sports a P/B ratio of 2.41 as well; this compares to its industry's price-to-book ratio of 1.29. In the past 52 weeks, SLCA's P/B has been as high as 2.59, as low as 0.85, with a median of 1.24.

These figures are just a handful of the metrics value investors tend to look at, but they help show that ClevelandCliffs and U.S. Silica Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CLF and SLCA feels like a great value stock at the moment.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


ClevelandCliffs Inc. (CLF) - free report >>

U.S. Silica Holdings, Inc. (SLCA) - free report >>

Published in