Canada Markets closed

Is Siderurgica Nacional (SID) a Great Value Stock Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Siderurgica Nacional (SID). SID is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 3.22, which compares to its industry's average of 5.25. Over the past 52 weeks, SID's Forward P/E has been as high as 10.58 and as low as 3.03, with a median of 7.77.

SID is also sporting a PEG ratio of 0.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SID's PEG compares to its industry's average PEG of 0.36. Over the last 12 months, SID's PEG has been as high as 0.48 and as low as 0.13, with a median of 0.16.

Finally, investors will want to recognize that SID has a P/CF ratio of 3.34. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SID's P/CF compares to its industry's average P/CF of 12.59. Over the past year, SID's P/CF has been as high as 156.17 and as low as 3.34, with a median of 7.07.

Value investors will likely look at more than just these metrics, but the above data helps show that Siderurgica Nacional is likely undervalued currently. And when considering the strength of its earnings outlook, SID sticks out at 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
National Steel Company (SID) : Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting