In This Article:
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 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 sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10 right now. For comparison, its industry sports an average P/E of 10.35. Over the last 12 months, SSAAY's Forward P/E has been as high as 11.97 and as low as 6.19, with a median of 9.68.
We should also highlight that SSAAY has a P/B ratio of 1.26. 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. SSAAY's current P/B looks attractive when compared to its industry's average P/B of 1.63. Over the past year, SSAAY's P/B has been as high as 1.26 and as low as 0.79, with a median of 1.07.
If you're looking for another solid Steel - Producers value stock, take a look at United States Steel (X). X is a # 1 (Strong Buy) stock with a Value score of A.
United States Steel sports a P/B ratio of 0.93 as well; this compares to its industry's price-to-book ratio of 1.63. In the past 52 weeks, X's P/B has been as high as 1, as low as 0.45, with a median of 0.64.
Value investors will likely look at more than just these metrics, but the above data helps show that SSAB and United States Steel are likely undervalued currently. And when considering the strength of its earnings outlook, SSAAY and X sticks out as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report