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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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Ryerson (RYI - Free Report) . RYI is currently holding a Zacks Rank of #2 (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 5. Over the past 52 weeks, RYI's Forward P/E has been as high as 12.28 and as low as 1.61, with a median of 6.84.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RYI has a P/S ratio of 0.16. This compares to its industry's average P/S of 0.26.
Finally, we should also recognize that RYI has a P/CF ratio of 1.90. 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. RYI's P/CF compares to its industry's average P/CF of 3.28. RYI's P/CF has been as high as 7.07 and as low as 1.32, with a median of 2.84, all within the past year.
Investors could also keep in mind Salzgitter (SZGPY - Free Report) , an Steel - Producers stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Salzgitter also has a P/B ratio of 0.32 compared to its industry's price-to-book ratio of 1.25. Over the past year, its P/B ratio has been as high as 0.78, as low as 0.28, with a median of 0.52.
Value investors will likely look at more than just these metrics, but the above data helps show that Ryerson and Salzgitter are likely undervalued currently. And when considering the strength of its earnings outlook, RYI and SZGPY sticks out as one of the market's strongest value stocks.
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Is Ryerson (RYI) 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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Ryerson (RYI - Free Report) . RYI is currently holding a Zacks Rank of #2 (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 5. Over the past 52 weeks, RYI's Forward P/E has been as high as 12.28 and as low as 1.61, with a median of 6.84.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RYI has a P/S ratio of 0.16. This compares to its industry's average P/S of 0.26.
Finally, we should also recognize that RYI has a P/CF ratio of 1.90. 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. RYI's P/CF compares to its industry's average P/CF of 3.28. RYI's P/CF has been as high as 7.07 and as low as 1.32, with a median of 2.84, all within the past year.
Investors could also keep in mind Salzgitter (SZGPY - Free Report) , an Steel - Producers stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Salzgitter also has a P/B ratio of 0.32 compared to its industry's price-to-book ratio of 1.25. Over the past year, its P/B ratio has been as high as 0.78, as low as 0.28, with a median of 0.52.
Value investors will likely look at more than just these metrics, but the above data helps show that Ryerson and Salzgitter are likely undervalued currently. And when considering the strength of its earnings outlook, RYI and SZGPY sticks out as one of the market's strongest value stocks.