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USNZY or STLD: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Steel - Producers sector have probably already heard of Usinas Siderurgicas de Minas Gerais SA (USNZY - Free Report) and Steel Dynamics (STLD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Usinas Siderurgicas de Minas Gerais SA and Steel Dynamics are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that USNZY has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
USNZY currently has a forward P/E ratio of 6.83, while STLD has a forward P/E of 18.16. We also note that USNZY has a PEG ratio of 0.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. STLD currently has a PEG ratio of 0.57.
Another notable valuation metric for USNZY is its P/B ratio of 0.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, STLD has a P/B of 4.3.
These metrics, and several others, help USNZY earn a Value grade of A, while STLD has been given a Value grade of C.
USNZY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that USNZY is likely the superior value option right now.
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USNZY or STLD: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Steel - Producers sector have probably already heard of Usinas Siderurgicas de Minas Gerais SA (USNZY - Free Report) and Steel Dynamics (STLD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Usinas Siderurgicas de Minas Gerais SA and Steel Dynamics are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that USNZY has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
USNZY currently has a forward P/E ratio of 6.83, while STLD has a forward P/E of 18.16. We also note that USNZY has a PEG ratio of 0.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. STLD currently has a PEG ratio of 0.57.
Another notable valuation metric for USNZY is its P/B ratio of 0.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, STLD has a P/B of 4.3.
These metrics, and several others, help USNZY earn a Value grade of A, while STLD has been given a Value grade of C.
USNZY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that USNZY is likely the superior value option right now.