Is SSAB (SSAAY) 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.
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 stock to keep an eye on is SSAB (SSAAY). SSAAY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.46 right now. For comparison, its industry sports an average P/E of 9.51. Over the past 52 weeks, SSAAY's Forward P/E has been as high as 11.97 and as low as 2.63, with a median of 9.23.
We should also highlight that SSAAY has a P/B ratio of 1.19. The P/B ratio is used to compare a stock's market value with 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 1.81. Over the past year, SSAAY's P/B has been as high as 1.22 and as low as 0.57, with a median of 1.02.
Finally, investors will want to recognize that SSAAY has a P/CF ratio of 4.64. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 11.15. Over the past year, SSAAY's P/CF has been as high as 4.76 and as low as 1.91, with a median of 3.17.
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 sports a P/B ratio of 0.78 as well; this compares to its industry's price-to-book ratio of 1.81. In the past 52 weeks, X's P/B has been as high as 0.78, 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 SSAB and United States Steel are likely undervalued currently. And when considering the strength of its earnings outlook, SSAAY and X sticks out as one of the market's strongest value stocks.
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SSAB (SSAAY) : Free Stock Analysis Report
United States Steel Corporation (X) : Free Stock Analysis Report
