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Should Value Investors Buy Norsk Hydro ASA (NHYDY) 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Norsk Hydro ASA (NHYDY - Free Report) . NHYDY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors will also notice that NHYDY has a PEG ratio of 0.70. 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. NHYDY's industry currently sports an average PEG of 1.10. Within the past year, NHYDY's PEG has been as high as 0.84 and as low as 0.20, with a median of 0.30.
Another valuation metric that we should highlight is NHYDY's P/B ratio of 1.42. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. NHYDY's current P/B looks attractive when compared to its industry's average P/B of 3.78. Within the past 52 weeks, NHYDY's P/B has been as high as 1.90 and as low as 0.96, with a median of 1.30.
Finally, investors should note that NHYDY has a P/CF ratio of 4.61. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NHYDY's P/CF compares to its industry's average P/CF of 8.03. Within the past 12 months, NHYDY's P/CF has been as high as 7.46 and as low as 2.56, with a median of 3.97.
If you're looking for another solid Metal Products - Procurement and Fabrication value stock, take a look at Worthington Industries (WOR - Free Report) . WOR is a # 2 (Buy) stock with a Value score of A.
Worthington Industries sports a P/B ratio of 1.80 as well; this compares to its industry's price-to-book ratio of 3.78. In the past 52 weeks, WOR's P/B has been as high as 1.88, as low as 1.15, with a median of 1.56.
Value investors will likely look at more than just these metrics, but the above data helps show that Norsk Hydro ASA and Worthington Industries are likely undervalued currently. And when considering the strength of its earnings outlook, NHYDY and WOR sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Norsk Hydro ASA (NHYDY) 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Norsk Hydro ASA (NHYDY - Free Report) . NHYDY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors will also notice that NHYDY has a PEG ratio of 0.70. 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. NHYDY's industry currently sports an average PEG of 1.10. Within the past year, NHYDY's PEG has been as high as 0.84 and as low as 0.20, with a median of 0.30.
Another valuation metric that we should highlight is NHYDY's P/B ratio of 1.42. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. NHYDY's current P/B looks attractive when compared to its industry's average P/B of 3.78. Within the past 52 weeks, NHYDY's P/B has been as high as 1.90 and as low as 0.96, with a median of 1.30.
Finally, investors should note that NHYDY has a P/CF ratio of 4.61. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NHYDY's P/CF compares to its industry's average P/CF of 8.03. Within the past 12 months, NHYDY's P/CF has been as high as 7.46 and as low as 2.56, with a median of 3.97.
If you're looking for another solid Metal Products - Procurement and Fabrication value stock, take a look at Worthington Industries (WOR - Free Report) . WOR is a # 2 (Buy) stock with a Value score of A.
Worthington Industries sports a P/B ratio of 1.80 as well; this compares to its industry's price-to-book ratio of 3.78. In the past 52 weeks, WOR's P/B has been as high as 1.88, as low as 1.15, with a median of 1.56.
Value investors will likely look at more than just these metrics, but the above data helps show that Norsk Hydro ASA and Worthington Industries are likely undervalued currently. And when considering the strength of its earnings outlook, NHYDY and WOR sticks out as one of the market's strongest value stocks.