Are Investors Undervaluing National Steel (SID) Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is National Steel (SID). SID is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 4.91, which compares to its industry's average of 7.94. Over the last 12 months, SID's Forward P/E has been as high as 6.83 and as low as 1.85, with a median of 3.73.
Another notable valuation metric for SID is its P/B ratio of 0.87. 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 1.51. Over the past year, SID's P/B has been as high as 1.79 and as low as 0.65, with a median of 0.90.
SSAB (SSAAY) may be another strong Steel - Producers stock to add to your shortlist. SSAAY is a # 2 (Buy) stock with a Value grade of A.
Additionally, SSAB has a P/B ratio of 1.05 while its industry's price-to-book ratio sits at 1.51. For SSAAY, this valuation metric has been as high as 1.18, as low as 0.45, with a median of 0.59 over the past year.
These are only a few of the key metrics included in National Steel and SSAB strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, SID and SSAAY look like an impressive value stock at the moment.
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National Steel Company (SID) : Free Stock Analysis Report
SSAB (SSAAY) : Free Stock Analysis Report
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