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Are Investors Undervaluing ThyssenKrupp (TKAMY) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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

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 company value investors might notice is ThyssenKrupp (TKAMY - Free Report) . TKAMY is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TKAMY has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.55.

Finally, investors should note that TKAMY has a P/CF ratio of 10.76. 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 26.11. TKAMY's P/CF has been as high as 12.05 and as low as 4.06, with a median of 6.99, all within the past year.

These are only a few of the key metrics included in ThyssenKrupp's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TKAMY looks like an impressive value stock at the moment.

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