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Are Investors Undervaluing Gerdau (GGB) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 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 is trading with P/E ratio of 6.45 right now. For comparison, its industry sports an average P/E of 8.37. Over the last 12 months, GGB's Forward P/E has been as high as 7.89 and as low as 3.56, with a median of 6.35.
Investors will also notice that GGB has a PEG ratio of 0.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GGB's PEG compares to its industry's average PEG of 0.57. GGB's PEG has been as high as 0.37 and as low as 0.17, with a median of 0.29, all within the past year.
We should also highlight that GGB has a P/B ratio of 0.92. The P/B ratio pits a stock's market value against 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 1.37. Over the past year, GGB's P/B has been as high as 1.22 and as low as 0.77, with a median of 0.96.
Finally, investors will want to recognize that GGB has a P/CF ratio of 3.73. 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 stock's P/CF looks attractive against its industry's average P/CF of 9.57. Over the past year, GGB's P/CF has been as high as 4.43 and as low as 1.88, with a median of 2.88.
Investors could also keep in mind POSCO (PKX - Free Report) , an Steel - Producers stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
POSCO is currently trading with a Forward P/E ratio of 9.73 while its PEG ratio sits at 0.54. Both of the company's metrics compare favorably to its industry's average P/E of 8.37 and average PEG ratio of 0.57.
Over the past year, PKX's P/E has been as high as 13.95, as low as 5.14, with a median of 6.81; its PEG ratio has been as high as 1.17, as low as 0.54, with a median of 0.29 during the same time period.
POSCO sports a P/B ratio of 0.69 as well; this compares to its industry's price-to-book ratio of 1.37. In the past 52 weeks, PKX's P/B has been as high as 0.84, as low as 0.24, with a median of 0.38.
These are just a handful of the figures considered in Gerdau and POSCO'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 PKX is an impressive value stock right now.
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Are Investors Undervaluing Gerdau (GGB) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 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 is trading with P/E ratio of 6.45 right now. For comparison, its industry sports an average P/E of 8.37. Over the last 12 months, GGB's Forward P/E has been as high as 7.89 and as low as 3.56, with a median of 6.35.
Investors will also notice that GGB has a PEG ratio of 0.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GGB's PEG compares to its industry's average PEG of 0.57. GGB's PEG has been as high as 0.37 and as low as 0.17, with a median of 0.29, all within the past year.
We should also highlight that GGB has a P/B ratio of 0.92. The P/B ratio pits a stock's market value against 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 1.37. Over the past year, GGB's P/B has been as high as 1.22 and as low as 0.77, with a median of 0.96.
Finally, investors will want to recognize that GGB has a P/CF ratio of 3.73. 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 stock's P/CF looks attractive against its industry's average P/CF of 9.57. Over the past year, GGB's P/CF has been as high as 4.43 and as low as 1.88, with a median of 2.88.
Investors could also keep in mind POSCO (PKX - Free Report) , an Steel - Producers stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
POSCO is currently trading with a Forward P/E ratio of 9.73 while its PEG ratio sits at 0.54. Both of the company's metrics compare favorably to its industry's average P/E of 8.37 and average PEG ratio of 0.57.
Over the past year, PKX's P/E has been as high as 13.95, as low as 5.14, with a median of 6.81; its PEG ratio has been as high as 1.17, as low as 0.54, with a median of 0.29 during the same time period.
POSCO sports a P/B ratio of 0.69 as well; this compares to its industry's price-to-book ratio of 1.37. In the past 52 weeks, PKX's P/B has been as high as 0.84, as low as 0.24, with a median of 0.38.
These are just a handful of the figures considered in Gerdau and POSCO'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 PKX is an impressive value stock right now.