Is Posco (PKX) Stock Undervalued 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Posco (PKX). PKX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.51, while its industry has an average P/E of 12.71. Over the past year, PKX's Forward P/E has been as high as 9.57 and as low as 4.78, with a median of 8.02.
Another notable valuation metric for PKX is its P/B ratio of 0.41. 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 solid versus its industry's average P/B of 0.91. PKX's P/B has been as high as 0.48 and as low as 0.24, with a median of 0.38, over the past year.
These are only a few of the key metrics included in Posco's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PKX looks like an impressive value stock at the moment.
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