Should Value Investors Buy Nexa Resources (NEXA) Stock?
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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Nexa Resources (NEXA). NEXA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 2.98. This compares to its industry's average Forward P/E of 8.65. Over the last 12 months, NEXA's Forward P/E has been as high as 7.19 and as low as 2.73, with a median of 4.70.
Investors will also notice that NEXA has a PEG ratio of 0.55. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NEXA's PEG compares to its industry's average PEG of 0.91. Over the past 52 weeks, NEXA's PEG has been as high as 4.65 and as low as 0.50, with a median of 3.72.
Another great Mining - Miscellaneous stock you could consider is U.S. Silica Holdings (SLCA), which is a # 2 (Buy) stock with a Value Score of A.
Additionally, U.S. Silica Holdings has a P/B ratio of 2.23 while its industry's price-to-book ratio sits at 4.04. For SLCA, this valuation metric has been as high as 2.59, as low as 0.85, with a median of 1.26 over the past year.
These are just a handful of the figures considered in Nexa Resources and U.S. Silica Holdings'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 NEXA and SLCA is an impressive value stock right now.
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Nexa Resources S.A. (NEXA) : Free Stock Analysis Report
U.S. Silica Holdings, Inc. (SLCA) : Free Stock Analysis Report
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