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Should Value Investors Buy Norsk Hydro ASA (NHYDY) Stock?
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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Norsk Hydro ASA (NHYDY - Free Report) . NHYDY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.32, while its industry has an average P/E of 24.59. NHYDY's Forward P/E has been as high as 17.13 and as low as 5.72, with a median of 8.72, all within the past year.
We also note that NHYDY holds a PEG ratio of 0.60. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NHYDY's PEG compares to its industry's average PEG of 1. NHYDY's PEG has been as high as 2.56 and as low as 0.38, with a median of 1, all within the past year.
Finally, investors should note that NHYDY has a P/CF ratio of 8.89. 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. This stock's P/CF looks attractive against its industry's average P/CF of 28.45. Over the past 52 weeks, NHYDY's P/CF has been as high as 10.45 and as low as 4.02, with a median of 5.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Norsk Hydro ASA is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NHYDY feels like a great value stock at the moment.
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Should Value Investors Buy Norsk Hydro ASA (NHYDY) Stock?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Norsk Hydro ASA (NHYDY - Free Report) . NHYDY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.32, while its industry has an average P/E of 24.59. NHYDY's Forward P/E has been as high as 17.13 and as low as 5.72, with a median of 8.72, all within the past year.
We also note that NHYDY holds a PEG ratio of 0.60. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NHYDY's PEG compares to its industry's average PEG of 1. NHYDY's PEG has been as high as 2.56 and as low as 0.38, with a median of 1, all within the past year.
Finally, investors should note that NHYDY has a P/CF ratio of 8.89. 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. This stock's P/CF looks attractive against its industry's average P/CF of 28.45. Over the past 52 weeks, NHYDY's P/CF has been as high as 10.45 and as low as 4.02, with a median of 5.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Norsk Hydro ASA is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NHYDY feels like a great value stock at the moment.