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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the “Value” category. Stocks with high Zacks Ranks and “A” grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is ArcelorMittal (MT – Free Report) . MT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.03, while its industry has an average P/E of 10.98. MT’s Forward P/E has been as high as 8.54 and as low as 4.80, with a median of 5.80, all within the past year.
Investors will also notice that MT has a PEG ratio of 0.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. MT’s PEG compares to its industry’s average PEG of 0.37. MT’s PEG has been as high as 0.56 and as low as 0.13, with a median of 0.35, all within the past year.
Finally, investors should note that MT has a P/CF ratio of 6.06. 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. MT’s P/CF compares to its industry’s average P/CF of 13.97. Over the past 52 weeks, MT’s P/CF has been as high as 14.53 and as low as 4.12, with a median of 6.58.
If you’re looking for another solid Steel – Producers value stock, take a look at Salzgitter (SZGPY – Free Report) . SZGPY is a # 2 (Buy) stock with a Value score of A.
Salzgitter also has a P/B ratio of 0.27 compared to its industry’s price-to-book ratio of 1.58. Over the past year, its P/B ratio has been as high as 0.29, as low as 0.15, with a median of 0.20.
These are just a handful of the figures considered in ArcelorMittal and Salzgitter’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 MT and SZGPY is an impressive value stock right now.
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