Is Acerinox (ANIOY) a Great Value Stock Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 to watch right now is Acerinox (ANIOY). ANIOY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 3.10, while its industry has an average P/E of 8.02. Over the past 52 weeks, ANIOY's Forward P/E has been as high as 11.62 and as low as 3.09, with a median of 4.17.
We should also highlight that ANIOY has a P/B ratio of 0.85. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.33. Within the past 52 weeks, ANIOY's P/B has been as high as 1.50 and as low as 0.68, with a median of 0.87.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ANIOY has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.28.
If you're looking for another solid Steel - Producers value stock, take a look at Timken Steel (TMST). TMST is a # 1 (Strong Buy) stock with a Value score of A.
Timken Steel also has a P/B ratio of 1.09 compared to its industry's price-to-book ratio of 1.33. Over the past year, its P/B ratio has been as high as 1.73, as low as 0.87, with a median of 1.13.
These are only a few of the key metrics included in Acerinox and Timken Steel strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ANIOY and TMST look like an impressive value stock at the moment.
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