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Is Commercial Metals (CMC) Stock Undervalued 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 to watch right now is Commercial Metals (CMC - Free Report) . CMC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 9.01, which compares to its industry's average of 9.02. CMC's Forward P/E has been as high as 9.68 and as low as 3.85, with a median of 7.18, all within the past year.
Finally, our model also underscores that CMC has a P/CF ratio of 4.83. 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 4.89. Over the past year, CMC's P/CF has been as high as 6.26 and as low as 3.07, with a median of 4.20.
If you're looking for another solid Steel - Producers value stock, take a look at Usinas Siderurgicas de Minas Gerais (USNZY - Free Report) . USNZY is a # 2 (Buy) stock with a Value score of A.
Usinas Siderurgicas de Minas Gerais is trading at a forward earnings multiple of 15.30 at the moment, with a PEG ratio of 0.75. This compares to its industry's average P/E of 9.02 and average PEG ratio of 0.68.
USNZY's price-to-earnings ratio has been as high as 15.30 and as low as 2.68, with a median of 4.93, while its PEG ratio has been as high as 0.75 and as low as 0.16, with a median of 0.29, all within the past year.
Usinas Siderurgicas de Minas Gerais sports a P/B ratio of 0.17 as well; this compares to its industry's price-to-book ratio of 1.51. In the past 52 weeks, USNZY's P/B has been as high as 0.40, as low as 0.13, with a median of 0.19.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Commercial Metals and Usinas Siderurgicas de Minas Gerais are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CMC and USNZY feels like a great value stock at the moment.
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Is Commercial Metals (CMC) Stock Undervalued 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 to watch right now is Commercial Metals (CMC - Free Report) . CMC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 9.01, which compares to its industry's average of 9.02. CMC's Forward P/E has been as high as 9.68 and as low as 3.85, with a median of 7.18, all within the past year.
Finally, our model also underscores that CMC has a P/CF ratio of 4.83. 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 4.89. Over the past year, CMC's P/CF has been as high as 6.26 and as low as 3.07, with a median of 4.20.
If you're looking for another solid Steel - Producers value stock, take a look at Usinas Siderurgicas de Minas Gerais (USNZY - Free Report) . USNZY is a # 2 (Buy) stock with a Value score of A.
Usinas Siderurgicas de Minas Gerais is trading at a forward earnings multiple of 15.30 at the moment, with a PEG ratio of 0.75. This compares to its industry's average P/E of 9.02 and average PEG ratio of 0.68.
USNZY's price-to-earnings ratio has been as high as 15.30 and as low as 2.68, with a median of 4.93, while its PEG ratio has been as high as 0.75 and as low as 0.16, with a median of 0.29, all within the past year.
Usinas Siderurgicas de Minas Gerais sports a P/B ratio of 0.17 as well; this compares to its industry's price-to-book ratio of 1.51. In the past 52 weeks, USNZY's P/B has been as high as 0.40, as low as 0.13, with a median of 0.19.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Commercial Metals and Usinas Siderurgicas de Minas Gerais are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CMC and USNZY feels like a great value stock at the moment.