Is Outokumpu (OUTKY) Stock Undervalued Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
Outokumpu (OUTKY) is a stock many investors are watching right now. OUTKY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We should also highlight that OUTKY has a P/B ratio of 0.53. Investors use the P/B ratio to look at a stock's market value versus 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 1.50. Over the past 12 months, OUTKY's P/B has been as high as 0.87 and as low as 0.41, with a median of 0.60.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OUTKY has a P/S ratio of 0.2. This compares to its industry's average P/S of 0.3.
Finally, we should also recognize that OUTKY has a P/CF ratio of 1.62. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.85. OUTKY's P/CF has been as high as 3.15 and as low as 1.23, with a median of 1.72, all within the past year.
If you're looking for another solid Steel - Producers value stock, take a look at National Steel (SID). SID is a # 2 (Buy) stock with a Value score of A.
Shares of National Steel currently holds a Forward P/E ratio of 6.01, and its PEG ratio is 1.87. In comparison, its industry sports average P/E and PEG ratios of 8.76 and 0.66.
Over the last 12 months, SID's P/E has been as high as 6.01, as low as 1.85, with a median of 3.47, and its PEG ratio has been as high as 1.87, as low as 0.21, with a median of 0.91.
National Steel also has a P/B ratio of 1.05 compared to its industry's price-to-book ratio of 1.50. Over the past year, its P/B ratio has been as high as 1.82, as low as 0.65, with a median of 0.90.
Value investors will likely look at more than just these metrics, but the above data helps show that Outokumpu and National Steel are likely undervalued currently. And when considering the strength of its earnings outlook, OUTKY and SID sticks out as one of the market's strongest value stocks.
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