We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Gerdau (GGB - Free Report) . GGB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.49. This compares to its industry's average Forward P/E of 8.69. Over the past 52 weeks, GGB's Forward P/E has been as high as 7.51 and as low as 3.45, with a median of 5.38.
Investors should also note that GGB holds a PEG ratio of 0.35. 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. GGB's industry currently sports an average PEG of 0.66. Over the last 12 months, GGB's PEG has been as high as 0.39 and as low as 0.16, with a median of 0.25.
Another notable valuation metric for GGB is its P/B ratio of 1.12. The P/B ratio pits a stock's market value against 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 1.45. Over the past 12 months, GGB's P/B has been as high as 1.39 and as low as 0.72, with a median of 1.05.
Finally, our model also underscores that GGB has a P/CF ratio of 3.31. 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. This stock's P/CF looks attractive against its industry's average P/CF of 4.69. GGB's P/CF has been as high as 3.31 and as low as 1.91, with a median of 2.69, all within the past year.
Another great Steel - Producers stock you could consider is Ternium (TX - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Ternium is trading at a forward earnings multiple of 8.43 at the moment, with a PEG ratio of 0.22. This compares to its industry's average P/E of 8.69 and average PEG ratio of 0.66.
TX's Forward P/E has been as high as 8.43 and as low as 2.94, with a median of 4.08. During the same time period, its PEG ratio has been as high as 0.23, as low as 0.22, with a median of 0.23.
Furthermore, Ternium holds a P/B ratio of 0.49 and its industry's price-to-book ratio is 1.45. TX's P/B has been as high as 0.79, as low as 0.39, with a median of 0.51 over the past 12 months.
These are just a handful of the figures considered in Gerdau and Ternium'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 GGB and TX is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Gerdau (GGB) Stock Undervalued 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Gerdau (GGB - Free Report) . GGB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.49. This compares to its industry's average Forward P/E of 8.69. Over the past 52 weeks, GGB's Forward P/E has been as high as 7.51 and as low as 3.45, with a median of 5.38.
Investors should also note that GGB holds a PEG ratio of 0.35. 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. GGB's industry currently sports an average PEG of 0.66. Over the last 12 months, GGB's PEG has been as high as 0.39 and as low as 0.16, with a median of 0.25.
Another notable valuation metric for GGB is its P/B ratio of 1.12. The P/B ratio pits a stock's market value against 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 1.45. Over the past 12 months, GGB's P/B has been as high as 1.39 and as low as 0.72, with a median of 1.05.
Finally, our model also underscores that GGB has a P/CF ratio of 3.31. 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. This stock's P/CF looks attractive against its industry's average P/CF of 4.69. GGB's P/CF has been as high as 3.31 and as low as 1.91, with a median of 2.69, all within the past year.
Another great Steel - Producers stock you could consider is Ternium (TX - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Ternium is trading at a forward earnings multiple of 8.43 at the moment, with a PEG ratio of 0.22. This compares to its industry's average P/E of 8.69 and average PEG ratio of 0.66.
TX's Forward P/E has been as high as 8.43 and as low as 2.94, with a median of 4.08. During the same time period, its PEG ratio has been as high as 0.23, as low as 0.22, with a median of 0.23.
Furthermore, Ternium holds a P/B ratio of 0.49 and its industry's price-to-book ratio is 1.45. TX's P/B has been as high as 0.79, as low as 0.39, with a median of 0.51 over the past 12 months.
These are just a handful of the figures considered in Gerdau and Ternium'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 GGB and TX is an impressive value stock right now.