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Are Investors Undervaluing Siderurgica Nacional (SID) Right Now?

Zacks Equity Research
·2 mins read

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 to watch right now is Siderurgica Nacional (SID). SID is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.54, which compares to its industry's average of 18.26. Over the past 52 weeks, SID's Forward P/E has been as high as 18.16 and as low as 3.27, with a median of 7.32.

Another valuation metric that we should highlight is SID's P/B ratio of 0.64. 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. SID's current P/B looks attractive when compared to its industry's average P/B of 1.13. Within the past 52 weeks, SID's P/B has been as high as 2.33 and as low as 0.52, with a median of 1.66.

Finally, investors should note that SID has a P/CF ratio of 2.18. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SID's current P/CF looks attractive when compared to its industry's average P/CF of 8.71. Over the past 52 weeks, SID's P/CF has been as high as 6.16 and as low as 1.77, with a median of 3.98.

These are just a handful of the figures considered in Siderurgica Nacional'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 SID is an impressive value stock right now.


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Zacks Investment Research