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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 value investors might notice is Ternium (TX - Free Report) . TX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Investors will also notice that TX has a PEG ratio of 0.22. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TX's industry has an average PEG of 0.31 right now. Over the last 12 months, TX's PEG has been as high as 0.30 and as low as 0.13, with a median of 0.22.
Investors should also recognize that TX has a P/B ratio of 0.64. 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 1.23. Over the past year, TX's P/B has been as high as 1.13 and as low as 0.59, with a median of 0.76.
Finally, we should also recognize that TX has a P/CF ratio of 1.81. 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. TX's P/CF compares to its industry's average P/CF of 4.21. Within the past 12 months, TX's P/CF has been as high as 3.85 and as low as 1.63, with a median of 2.04.
Another great Steel - Producers stock you could consider is United States Steel (X - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Shares of United States Steel are currently trading at a forward earnings multiple of 2.80 and a PEG ratio of 0.47 compared to its industry's P/E and PEG ratios of 4.09 and 0.31, respectively.
X's price-to-earnings ratio has been as high as 6.17 and as low as 1.60, with a median of 3.66, while its PEG ratio has been as high as 0.77 and as low as 0.42, with a median of 0.50, all within the past year.
United States Steel sports a P/B ratio of 0.65 as well; this compares to its industry's price-to-book ratio of 1.23. In the past 52 weeks, X's P/B has been as high as 1.64, as low as 0.55, with a median of 0.89.
These are only a few of the key metrics included in Ternium and United States 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, TX and X look like an impressive value stock at the moment.
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Is Ternium (TX) a Great Value Stock 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 value investors might notice is Ternium (TX - Free Report) . TX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Investors will also notice that TX has a PEG ratio of 0.22. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TX's industry has an average PEG of 0.31 right now. Over the last 12 months, TX's PEG has been as high as 0.30 and as low as 0.13, with a median of 0.22.
Investors should also recognize that TX has a P/B ratio of 0.64. 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 1.23. Over the past year, TX's P/B has been as high as 1.13 and as low as 0.59, with a median of 0.76.
Finally, we should also recognize that TX has a P/CF ratio of 1.81. 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. TX's P/CF compares to its industry's average P/CF of 4.21. Within the past 12 months, TX's P/CF has been as high as 3.85 and as low as 1.63, with a median of 2.04.
Another great Steel - Producers stock you could consider is United States Steel (X - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Shares of United States Steel are currently trading at a forward earnings multiple of 2.80 and a PEG ratio of 0.47 compared to its industry's P/E and PEG ratios of 4.09 and 0.31, respectively.
X's price-to-earnings ratio has been as high as 6.17 and as low as 1.60, with a median of 3.66, while its PEG ratio has been as high as 0.77 and as low as 0.42, with a median of 0.50, all within the past year.
United States Steel sports a P/B ratio of 0.65 as well; this compares to its industry's price-to-book ratio of 1.23. In the past 52 weeks, X's P/B has been as high as 1.64, as low as 0.55, with a median of 0.89.
These are only a few of the key metrics included in Ternium and United States 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, TX and X look like an impressive value stock at the moment.