Is Timken Steel (TMST) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
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 value investors might notice is Timken Steel (TMST). TMST is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors will also notice that TMST has a PEG ratio of 0.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TMST's industry has an average PEG of 0.76 right now. Over the last 12 months, TMST's PEG has been as high as 0.86 and as low as 0.62, with a median of 0.74.
Investors should also recognize that TMST has a P/B ratio of 1.33. 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 attractive against its industry's average P/B of 1.54. Within the past 52 weeks, TMST's P/B has been as high as 1.45 and as low as 0.92, with a median of 1.19.
Another great Steel - Producers stock you could consider is Olympic Steel (ZEUS), which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, Olympic Steel holds a P/B ratio of 1.12 and its industry's price-to-book ratio is 1.54. ZEUS's P/B has been as high as 1.27, as low as 0.50, with a median of 0.99 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Timken Steel and Olympic Steel are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TMST and ZEUS feels like a great value stock at the moment.
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Timken Steel Corporation (TMST) : Free Stock Analysis Report
Olympic Steel, Inc. (ZEUS) : Free Stock Analysis Report
