Is Legato Merger (ASTL) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is Legato Merger (ASTL). ASTL 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 4.69, which compares to its industry's average of 7.80. Over the past 52 weeks, ASTL's Forward P/E has been as high as 9.93 and as low as 2.43, with a median of 4.65.
Another valuation metric that we should highlight is ASTL's P/B ratio of 0.74. 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 1.55. Over the past year, ASTL's P/B has been as high as 1.32 and as low as 0.50, with a median of 0.73.
If you're looking for another solid Steel - Producers value stock, take a look at Ryerson (RYI). RYI is a # 1 (Strong Buy) stock with a Value score of A.
Ryerson sports a P/B ratio of 1.57 as well; this compares to its industry's price-to-book ratio of 1.55. In the past 52 weeks, RYI's P/B has been as high as 1.73, as low as 0.90, with a median of 1.36.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Legato Merger and Ryerson are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASTL and RYI feels like a great value stock at the moment.
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Algoma Steel Group Inc. (ASTL) : Free Stock Analysis Report
Ryerson Holding Corporation (RYI) : Free Stock Analysis Report
