Is Ryerson (RYI) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Ryerson (RYI). RYI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Another notable valuation metric for RYI is its P/B ratio of 1.15. 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 stock's P/B looks solid versus its industry's average P/B of 1.47. Over the past 12 months, RYI's P/B has been as high as 1.77 and as low as 1.01, with a median of 1.38.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RYI has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.43.
Finally, investors will want to recognize that RYI has a P/CF ratio of 5.88. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. RYI's current P/CF looks attractive when compared to its industry's average P/CF of 9.52. Over the past 52 weeks, RYI's P/CF has been as high as 8.91 and as low as 1.59, with a median of 3.98.
Another great Steel - Producers stock you could consider is Olympic Steel (ZEUS), which is a # 1 (Strong Buy) stock with a Value Score of A.
Olympic Steel sports a P/B ratio of 1.11 as well; this compares to its industry's price-to-book ratio of 1.47. In the past 52 weeks, ZEUS's P/B has been as high as 1.27, as low as 0.59, with a median of 1.01.
These are just a handful of the figures considered in Ryerson and Olympic Steel's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RYI and ZEUS is an impressive value stock right now.
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Ryerson Holding Corporation (RYI) : Free Stock Analysis Report
Olympic Steel, Inc. (ZEUS) : Free Stock Analysis Report
