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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Gerdau (GGB - Free Report) . GGB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.73 right now. For comparison, its industry sports an average P/E of 10.01. Over the last 12 months, GGB's Forward P/E has been as high as 7.51 and as low as 3.08, with a median of 5.38.
GGB is also sporting a PEG ratio of 0.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GGB's PEG compares to its industry's average PEG of 0.76. Within the past year, GGB's PEG has been as high as 0.39 and as low as 0.16, with a median of 0.25.
Investors should also recognize that GGB has a P/B ratio of 1.03. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.33. Over the past year, GGB's P/B has been as high as 1.39 and as low as 0.72, with a median of 1.05.
Finally, investors should note that GGB has a P/CF ratio of 3.03. 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. GGB's current P/CF looks attractive when compared to its industry's average P/CF of 4.30. Within the past 12 months, GGB's P/CF has been as high as 3.29 and as low as 1.91, with a median of 2.67.
If you're looking for another solid Steel - Producers value stock, take a look at Olympic Steel (ZEUS - Free Report) . ZEUS is a # 1 (Strong Buy) stock with a Value score of A.
Olympic Steel sports a P/B ratio of 0.72 as well; this compares to its industry's price-to-book ratio of 1.33. In the past 52 weeks, ZEUS's P/B has been as high as 1.02, as low as 0.50, with a median of 0.66.
Value investors will likely look at more than just these metrics, but the above data helps show that Gerdau and Olympic Steel are likely undervalued currently. And when considering the strength of its earnings outlook, GGB and ZEUS sticks out as one of the market's strongest value stocks.
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Is Gerdau (GGB) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Gerdau (GGB - Free Report) . GGB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.73 right now. For comparison, its industry sports an average P/E of 10.01. Over the last 12 months, GGB's Forward P/E has been as high as 7.51 and as low as 3.08, with a median of 5.38.
GGB is also sporting a PEG ratio of 0.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GGB's PEG compares to its industry's average PEG of 0.76. Within the past year, GGB's PEG has been as high as 0.39 and as low as 0.16, with a median of 0.25.
Investors should also recognize that GGB has a P/B ratio of 1.03. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.33. Over the past year, GGB's P/B has been as high as 1.39 and as low as 0.72, with a median of 1.05.
Finally, investors should note that GGB has a P/CF ratio of 3.03. 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. GGB's current P/CF looks attractive when compared to its industry's average P/CF of 4.30. Within the past 12 months, GGB's P/CF has been as high as 3.29 and as low as 1.91, with a median of 2.67.
If you're looking for another solid Steel - Producers value stock, take a look at Olympic Steel (ZEUS - Free Report) . ZEUS is a # 1 (Strong Buy) stock with a Value score of A.
Olympic Steel sports a P/B ratio of 0.72 as well; this compares to its industry's price-to-book ratio of 1.33. In the past 52 weeks, ZEUS's P/B has been as high as 1.02, as low as 0.50, with a median of 0.66.
Value investors will likely look at more than just these metrics, but the above data helps show that Gerdau and Olympic Steel are likely undervalued currently. And when considering the strength of its earnings outlook, GGB and ZEUS sticks out as one of the market's strongest value stocks.