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Should Value Investors Buy Outokumpu (OUTKY) Stock?
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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 company to watch right now is Outokumpu (OUTKY - Free Report) . OUTKY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for OUTKY is its P/B ratio of 0.57. The P/B ratio is used to compare a stock's market value with 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. OUTKY's P/B has been as high as 0.75 and as low as 0.41, with a median of 0.57, over the past year.
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. OUTKY has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.34.
Finally, investors should note that OUTKY has a P/CF ratio of 1.73. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 2.92. OUTKY's P/CF has been as high as 2.31 and as low as 1.23, with a median of 1.72, all within the past year.
Another great Steel - Producers stock you could consider is United States Steel (X - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
United States Steel also has a P/B ratio of 0.64 compared to its industry's price-to-book ratio of 1.33. Over the past year, its P/B ratio has been as high as 1.14, as low as 0.39, with a median of 0.58.
These are only a few of the key metrics included in Outokumpu and United States Steel strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, OUTKY and X look like an impressive value stock at the moment.
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Should Value Investors Buy Outokumpu (OUTKY) Stock?
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 company to watch right now is Outokumpu (OUTKY - Free Report) . OUTKY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for OUTKY is its P/B ratio of 0.57. The P/B ratio is used to compare a stock's market value with 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. OUTKY's P/B has been as high as 0.75 and as low as 0.41, with a median of 0.57, over the past year.
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. OUTKY has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.34.
Finally, investors should note that OUTKY has a P/CF ratio of 1.73. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 2.92. OUTKY's P/CF has been as high as 2.31 and as low as 1.23, with a median of 1.72, all within the past year.
Another great Steel - Producers stock you could consider is United States Steel (X - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
United States Steel also has a P/B ratio of 0.64 compared to its industry's price-to-book ratio of 1.33. Over the past year, its P/B ratio has been as high as 1.14, as low as 0.39, with a median of 0.58.
These are only a few of the key metrics included in Outokumpu and United States Steel strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, OUTKY and X look like an impressive value stock at the moment.