U.S. markets closed
  • S&P 500

    3,911.74
    +116.01 (+3.06%)
     
  • Dow 30

    31,500.68
    +823.32 (+2.68%)
     
  • Nasdaq

    11,607.62
    +375.43 (+3.34%)
     
  • Russell 2000

    1,765.74
    +54.06 (+3.16%)
     
  • Crude Oil

    107.06
    +2.79 (+2.68%)
     
  • Gold

    1,828.10
    -1.70 (-0.09%)
     
  • Silver

    21.13
    +0.09 (+0.42%)
     
  • EUR/USD

    1.0559
    +0.0034 (+0.33%)
     
  • 10-Yr Bond

    3.1250
    +0.0570 (+1.86%)
     
  • GBP/USD

    1.2270
    +0.0009 (+0.07%)
     
  • USD/JPY

    135.2100
    +0.2770 (+0.21%)
     
  • BTC-USD

    21,392.53
    -7.96 (-0.04%)
     
  • CMC Crypto 200

    462.12
    +8.22 (+1.81%)
     
  • FTSE 100

    7,208.81
    +188.36 (+2.68%)
     
  • Nikkei 225

    26,491.97
    +320.72 (+1.23%)
     

Are Investors Undervaluing These Basic Materials Stocks Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Aperam (APEMY). APEMY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 3.89, which compares to its industry's average of 5.89. APEMY's Forward P/E has been as high as 11.92 and as low as 3.79, with a median of 6.78, all within the past year.

Another valuation metric that we should highlight is APEMY's P/B ratio of 1.04. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.86. Over the past 12 months, APEMY's P/B has been as high as 1.90 and as low as 1.04, with a median of 1.53.

Usinas Siderurgicas de Minas Gerais (USNZY) may be another strong Steel - Producers stock to add to your shortlist. USNZY is a # 2 (Buy) stock with a Value grade of A.

Shares of Usinas Siderurgicas de Minas Gerais currently holds a Forward P/E ratio of 5.12, and its PEG ratio is 0.31. In comparison, its industry sports average P/E and PEG ratios of 5.89 and 0.35.

Over the last 12 months, USNZY's P/E has been as high as 12.63, as low as 2.20, with a median of 5.74, and its PEG ratio has been as high as 0.48, as low as 0.08, with a median of 0.23.

Furthermore, Usinas Siderurgicas de Minas Gerais holds a P/B ratio of 0.36 and its industry's price-to-book ratio is 1.86. USNZY's P/B has been as high as 0.71, as low as 0.27, with a median of 0.39 over the past 12 months.

These are just a handful of the figures considered in Aperam and Usinas Siderurgicas de Minas Gerais'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 APEMY and USNZY is an impressive value stock right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Aperam (APEMY) : Free Stock Analysis Report
 
Usinas Siderurgicas de Minas Gerais SA (USNZY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.