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Is Usinas Siderurgicas de Minas Gerais (USNZY) Stock Undervalued Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company to watch right now is Usinas Siderurgicas de Minas Gerais (USNZY - Free Report) . USNZY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.13 right now. For comparison, its industry sports an average P/E of 10.44. USNZY's Forward P/E has been as high as 20.50 and as low as 5.21, with a median of 8.08, all within the past year.

Finally, investors will want to recognize that USNZY has a P/CF ratio of 4.85. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 15.88. 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 4.71.

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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