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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 stock to keep an eye on is Nucor (NUE). NUE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that NUE has a P/B ratio of 1.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. NUE's current P/B looks attractive when compared to its industry's average P/B of 1.48. NUE's P/B has been as high as 1.94 and as low as 1.11, with a median of 1.58, over the past year.
Finally, investors should note that NUE has a P/CF ratio of 8.29. 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. NUE's current P/CF looks attractive when compared to its industry's average P/CF of 13.49. Within the past 12 months, NUE's P/CF has been as high as 10.36 and as low as 6.78, with a median of 8.17.
These are only a few of the key metrics included in Nucor's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NUE looks like an impressive value stock at the moment.
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Nucor Corporation (NUE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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