Back to top

Image: Bigstock

Are Investors Undervaluing Usinas Siderurgicas de Minas Gerais (USNZY) Right Now?

Read MoreHide Full Article

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 stock to keep an eye on is Usinas Siderurgicas de Minas Gerais (USNZY - Free Report) . USNZY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 8.69, while its industry has an average P/E of 10.47. USNZY's Forward P/E has been as high as 20.50 and as low as 5.21, with a median of 8.04, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. USNZY has a P/S ratio of 0.13. This compares to its industry's average P/S of 0.33.

Finally, investors will want to recognize that USNZY has a P/CF ratio of 7.38. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.92. USNZY's P/CF has been as high as 7.38 and as low as 2.80, with a median of 4.61, all within the past year.

These are just a handful of the figures considered in Usinas Siderurgicas de Minas Gerais'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 USNZY is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Usinas Siderurgicas de Minas Gerais SA (USNZY) - free report >>

Published in