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Is Ryerson Holding (RYI) Stock Undervalued Right Now?

Zacks Equity Research

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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Ryerson Holding (RYI) is a stock many investors are watching right now. RYI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 4.07. This compares to its industry's average Forward P/E of 8.32. Over the last 12 months, RYI's Forward P/E has been as high as 7.69 and as low as 3.31, with a median of 5.22.

Finally, we should also recognize that RYI has a P/CF ratio of 1.90. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.16. Within the past 12 months, RYI's P/CF has been as high as 7.86 and as low as 1.49, with a median of 2.16.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Ryerson Holding is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RYI feels like a great value stock at the moment.


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