Should Value Investors Buy Voestalpine AG (VLPNY) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is Voestalpine AG (VLPNY). VLPNY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We should also highlight that VLPNY has a P/B ratio of 1.17. 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 solid versus its industry's average P/B of 3.23. Over the past 12 months, VLPNY's P/B has been as high as 1.25 and as low as 0.63, with a median of 1.02.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. VLPNY has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Voestalpine AG is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VLPNY feels like a great value stock at the moment.
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