Are Investors Undervaluing SSAB (SSAAY) 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
SSAB (SSAAY) is a stock many investors are watching right now. SSAAY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.54, which compares to its industry's average of 10.65. Over the past 52 weeks, SSAAY's Forward P/E has been as high as 11.97 and as low as 6.19, with a median of 9.46.
Another valuation metric that we should highlight is SSAAY's P/B ratio of 1.16. 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 stock's P/B looks solid versus its industry's average P/B of 1.62. Over the past year, SSAAY's P/B has been as high as 1.23 and as low as 0.79, with a median of 1.07.
Another great Steel - Producers stock you could consider is United States Steel (X), which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, United States Steel has a P/B ratio of 0.91 while its industry's price-to-book ratio sits at 1.62. For X, this valuation metric has been as high as 1, as low as 0.45, with a median of 0.63 over the past year.
These are only a few of the key metrics included in SSAB and United States 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, SSAAY and X look like an impressive value stock at the moment.
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
SSAB (SSAAY) : Free Stock Analysis Report
United States Steel Corporation (X) : Free Stock Analysis Report
