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Are Investors Undervaluing Ryerson (RYI) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Ryerson (RYI - Free Report) . RYI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
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 0.14. This compares to its industry's average P/S of 0.24.
Finally, investors should note that RYI has a P/CF ratio of 1.74. 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 2.71. Over the past year, RYI's P/CF has been as high as 6.70 and as low as 1.32, with a median of 2.77.
If you're looking for another solid Steel - Producers value stock, take a look at Salzgitter (SZGPY - Free Report) . SZGPY is a # 2 (Buy) stock with a Value score of A.
Salzgitter sports a P/B ratio of 0.26 as well; this compares to its industry's price-to-book ratio of 0.98. In the past 52 weeks, SZGPY's P/B has been as high as 0.70, as low as 0.23, with a median of 0.49.
These are just a handful of the figures considered in Ryerson and Salzgitter's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RYI and SZGPY is an impressive value stock right now.
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Are Investors Undervaluing Ryerson (RYI) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Ryerson (RYI - Free Report) . RYI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
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 0.14. This compares to its industry's average P/S of 0.24.
Finally, investors should note that RYI has a P/CF ratio of 1.74. 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 2.71. Over the past year, RYI's P/CF has been as high as 6.70 and as low as 1.32, with a median of 2.77.
If you're looking for another solid Steel - Producers value stock, take a look at Salzgitter (SZGPY - Free Report) . SZGPY is a # 2 (Buy) stock with a Value score of A.
Salzgitter sports a P/B ratio of 0.26 as well; this compares to its industry's price-to-book ratio of 0.98. In the past 52 weeks, SZGPY's P/B has been as high as 0.70, as low as 0.23, with a median of 0.49.
These are just a handful of the figures considered in Ryerson and Salzgitter's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RYI and SZGPY is an impressive value stock right now.