Is United States Steel (X) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
United States Steel (X) is a stock many investors are watching right now. X is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that X has a P/B ratio of 0.67. 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 stock's P/B looks attractive against its industry's average P/B of 1.40. Over the past 12 months, X's P/B has been as high as 0.69 and as low as 0.42, with a median of 0.57.
Finally, investors will want to recognize that X has a P/CF ratio of 3.80. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.22. X's P/CF has been as high as 3.91 and as low as 1.20, with a median of 2.28, all within the past year.
Olympic Steel (ZEUS) may be another strong Steel - Producers stock to add to your shortlist. ZEUS is a # 1 (Strong Buy) stock with a Value grade of A.
Olympic Steel also has a P/B ratio of 1.01 compared to its industry's price-to-book ratio of 1.40. Over the past year, its P/B ratio has been as high as 1.27, as low as 0.57, with a median of 1.01.
These are just a handful of the figures considered in United States Steel and Olympic 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 X and ZEUS is an impressive value stock right now.
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United States Steel Corporation (X) : Free Stock Analysis Report
Olympic Steel, Inc. (ZEUS) : Free Stock Analysis Report
