Is Steel Dynamics (STLD) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Steel Dynamics (STLD). STLD is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.15, which compares to its industry's average of 9.78. STLD's Forward P/E has been as high as 11.81 and as low as 4.45, with a median of 9.35, all within the past year.
Finally, our model also underscores that STLD has a P/CF ratio of 6.35. 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. STLD's current P/CF looks attractive when compared to its industry's average P/CF of 11.22. Over the past year, STLD's P/CF has been as high as 6.69 and as low as 3.79, with a median of 5.10.
If you're looking for another solid Steel - Producers value stock, take a look at United States Steel (X). X is a # 1 (Strong Buy) stock with a Value score of A.
United States Steel also has a P/B ratio of 0.98 compared to its industry's price-to-book ratio of 1.68. Over the past year, its P/B ratio has been as high as 1, as low as 0.45, with a median of 0.62.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Steel Dynamics and United States Steel are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, STLD and X feels like a great value stock at the moment.
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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
United States Steel Corporation (X) : Free Stock Analysis Report
