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Is National Steel (SID) Stock 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 National Steel (SID - Free Report) . SID is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 2.46, which compares to its industry's average of 4.76. Over the last 12 months, SID's Forward P/E has been as high as 5.63 and as low as 1.96, with a median of 3.47.
We also note that SID holds a PEG ratio of 0.28. 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. SID's industry currently sports an average PEG of 0.30. Over the past 52 weeks, SID's PEG has been as high as 0.44 and as low as 0.11, with a median of 0.19.
Investors should also recognize that SID has a P/B ratio of 1.41. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SID's current P/B looks attractive when compared to its industry's average P/B of 1.53. Over the past 12 months, SID's P/B has been as high as 4.41 and as low as 1.11, with a median of 1.67.
Finally, investors should note that SID has a P/CF ratio of 1.91. 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. SID's current P/CF looks attractive when compared to its industry's average P/CF of 4.85. Within the past 12 months, SID's P/CF has been as high as 5.43 and as low as 1.31, with a median of 2.27.
Timken Steel may be another strong Steel - Producers stock to add to your shortlist. TMST is a # 2 (Buy) stock with a Value grade of A.
Timken Steel sports a P/B ratio of 1.44 as well; this compares to its industry's price-to-book ratio of 1.53. In the past 52 weeks, TMST's P/B has been as high as 1.71, as low as 0.93, with a median of 1.13.
These are only a few of the key metrics included in National Steel and Timken 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, SID and TMST look like an impressive value stock at the moment.
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Is National Steel (SID) Stock 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 National Steel (SID - Free Report) . SID is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 2.46, which compares to its industry's average of 4.76. Over the last 12 months, SID's Forward P/E has been as high as 5.63 and as low as 1.96, with a median of 3.47.
We also note that SID holds a PEG ratio of 0.28. 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. SID's industry currently sports an average PEG of 0.30. Over the past 52 weeks, SID's PEG has been as high as 0.44 and as low as 0.11, with a median of 0.19.
Investors should also recognize that SID has a P/B ratio of 1.41. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SID's current P/B looks attractive when compared to its industry's average P/B of 1.53. Over the past 12 months, SID's P/B has been as high as 4.41 and as low as 1.11, with a median of 1.67.
Finally, investors should note that SID has a P/CF ratio of 1.91. 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. SID's current P/CF looks attractive when compared to its industry's average P/CF of 4.85. Within the past 12 months, SID's P/CF has been as high as 5.43 and as low as 1.31, with a median of 2.27.
Timken Steel may be another strong Steel - Producers stock to add to your shortlist. TMST is a # 2 (Buy) stock with a Value grade of A.
Timken Steel sports a P/B ratio of 1.44 as well; this compares to its industry's price-to-book ratio of 1.53. In the past 52 weeks, TMST's P/B has been as high as 1.71, as low as 0.93, with a median of 1.13.
These are only a few of the key metrics included in National Steel and Timken 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, SID and TMST look like an impressive value stock at the moment.