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Should Value Investors Buy Usinas Siderurgicas de Minas Gerais (USNZY) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Usinas Siderurgicas de Minas Gerais (USNZY - Free Report) is a stock many investors are watching right now. USNZY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 7, which compares to its industry's average of 10.86. Over the last 12 months, USNZY's Forward P/E has been as high as 20.50 and as low as 5.21, with a median of 8.08.

Finally, investors should note that USNZY has a P/CF ratio of 4.95. 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. USNZY's current P/CF looks attractive when compared to its industry's average P/CF of 15.16. Over the past year, USNZY's P/CF has been as high as 6.76 and as low as 2.80, with a median of 4.58.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Usinas Siderurgicas de Minas Gerais is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, USNZY feels like a great value stock at the moment.


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