Is Acerinox (ANIOY) Stock Undervalued Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Acerinox (ANIOY). ANIOY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.08 right now. For comparison, its industry sports an average P/E of 8.73. ANIOY's Forward P/E has been as high as 11.09 and as low as 3.09, with a median of 4.17, all within the past year.
Another valuation metric that we should highlight is ANIOY's P/B ratio of 0.95. The P/B is a method of comparing a stock's market value to 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 1.50. ANIOY's P/B has been as high as 1.46 and as low as 0.68, with a median of 0.87, over the past year.
Investors could also keep in mind Usinas Siderurgicas de Minas Gerais (USNZY), an Steel - Producers stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Usinas Siderurgicas de Minas Gerais currently holds a Forward P/E ratio of 12.52, and its PEG ratio is 0.75. In comparison, its industry sports average P/E and PEG ratios of 8.73 and 0.66.
USNZY's price-to-earnings ratio has been as high as 15.30 and as low as 2.68, with a median of 4.93, while its PEG ratio has been as high as 0.75 and as low as 0.16, with a median of 0.29, all within the past year.
Furthermore, Usinas Siderurgicas de Minas Gerais holds a P/B ratio of 0.17 and its industry's price-to-book ratio is 1.50. USNZY's P/B has been as high as 0.40, as low as 0.13, with a median of 0.18 over the past 12 months.
These are only a few of the key metrics included in Acerinox and Usinas Siderurgicas de Minas Gerais 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 USNZY look like an impressive value stock at the moment.
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