Should Value Investors Buy Acerinox (ANIOY) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company to watch right now is Acerinox (ANIOY). ANIOY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.51, while its industry has an average P/E of 9.52. Over the past 52 weeks, ANIOY's Forward P/E has been as high as 11.62 and as low as 3.17, with a median of 4.19.
We should also highlight that ANIOY has a P/B ratio of 0.85. 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. ANIOY's current P/B looks attractive when compared to its industry's average P/B of 1.29. ANIOY's P/B has been as high as 1.66 and as low as 0.68, with a median of 1.07, over the past year.
Investors could also keep in mind Aperam (APEMY), an Steel - Producers stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Additionally, Aperam has a P/B ratio of 0.69 while its industry's price-to-book ratio sits at 1.29. For APEMY, this valuation metric has been as high as 1.48, as low as 0.54, with a median of 0.76 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Acerinox and Aperam are likely undervalued currently. And when considering the strength of its earnings outlook, ANIOY and APEMY sticks out as one of the market's strongest value stocks.
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