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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Usinas Siderurgicas de Minas Gerais (USNZY). USNZY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.50, which compares to its industry's average of 11.01. Over the past 52 weeks, USNZY's Forward P/E has been as high as 20.50 and as low as 5.21, with a median of 7.78.
Finally, investors will want to recognize that USNZY has a P/CF ratio of 6.11. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. USNZY's current P/CF looks attractive when compared to its industry's average P/CF of 13.67. Over the past 52 weeks, USNZY's P/CF has been as high as 6.35 and as low as 2.39, with a median of 3.40.
Value investors will likely look at more than just these metrics, but the above data helps show that Usinas Siderurgicas de Minas Gerais is likely undervalued currently. And when considering the strength of its earnings outlook, USNZY sticks out at as one of the market's strongest value stocks.
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Usinas Siderurgicas de Minas Gerais SA (USNZY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).