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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 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.
SSAB (SSAAY) is a stock many investors are watching right now. SSAAY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.58, while its industry has an average P/E of 8.46. Over the last 12 months, SSAAY's Forward P/E has been as high as 10 and as low as 6.19, with a median of 7.93.
Another valuation metric that we should highlight is SSAAY's P/B ratio of 0.62. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.05. Within the past 52 weeks, SSAAY's P/B has been as high as 1.29 and as low as 0.61, with a median of 0.84.
Finally, investors will want to recognize that SSAAY has a P/CF ratio of 3.50. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SSAAY's P/CF compares to its industry's average P/CF of 12.90. Over the past 52 weeks, SSAAY's P/CF has been as high as 5.19 and as low as 3.19, with a median of 4.03.
These figures are just a handful of the metrics value investors tend to look at, but they help show that SSAB is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SSAAY feels like a great value stock at the moment.
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