Is Siderurgica Nacional (SID) Stock Undervalued Right Now?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Siderurgica Nacional (SID) is a stock many investors are watching right now. SID is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.53. This compares to its industry's average Forward P/E of 8.65. Over the last 12 months, SID's Forward P/E has been as high as 20.84 and as low as 6.28, with a median of 12.62.
Finally, we should also recognize that SID has a P/CF ratio of 3.91. 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. SID's current P/CF looks attractive when compared to its industry's average P/CF of 5.47. Within the past 12 months, SID's P/CF has been as high as 4.68 and as low as 1.73, with a median of 2.23.
These are just a handful of the figures considered in Siderurgica Nacional's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SID is an impressive value stock right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.