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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Ryerson (RYI). RYI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Investors should also recognize that RYI has a P/B ratio of 1.36. The P/B ratio pits a stock's market value against 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 1.88. Over the past 12 months, RYI's P/B has been as high as 1.77 and as low as 1.02, with a median of 1.38.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.23. This compares to its industry's average P/S of 0.51.
Finally, our model also underscores that RYI has a P/CF ratio of 7.98. 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. RYI's current P/CF looks attractive when compared to its industry's average P/CF of 11.57. RYI's P/CF has been as high as 8.91 and as low as 1.94, with a median of 4.42, all within the past year.
United States Steel (X) may be another strong Steel - Producers stock to add to your shortlist. X is a # 2 (Buy) stock with a Value grade of A.
United States Steel also has a P/B ratio of 0.97 compared to its industry's price-to-book ratio of 1.88. Over the past year, its P/B ratio has been as high as 1, as low as 0.45, with a median of 0.61.
Value investors will likely look at more than just these metrics, but the above data helps show that Ryerson and United States Steel are likely undervalued currently. And when considering the strength of its earnings outlook, RYI and X sticks out as one of the market's strongest value stocks.
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Ryerson Holding Corporation (RYI) : Free Stock Analysis Report
United States Steel Corporation (X) : Free Stock Analysis Report
