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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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.
Schnitzer Steel (SCHN) is a stock many investors are watching right now. SCHN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Investors should also recognize that SCHN has a P/B ratio of 0.69. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.13. Over the past year, SCHN's P/B has been as high as 1.06 and as low as 0.44, with a median of 0.77.
Finally, our model also underscores that SCHN has a P/CF ratio of 7.87. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.71. SCHN's P/CF has been as high as 8.27 and as low as 3.83, with a median of 5.43, all within the past year.
These are just a handful of the figures considered in Schnitzer 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 SCHN is an impressive value stock right now.
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Schnitzer Steel Industries, Inc. (SCHN) : Free Stock Analysis Report
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