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Should Value Investors Buy Siderurgica Nacional (SID) Stock?

Zacks Equity Research

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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

One company value investors might notice is Siderurgica Nacional (SID). SID is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.02 right now. For comparison, its industry sports an average P/E of 11.06. Over the past year, SID's Forward P/E has been as high as 20.84 and as low as 5.44, with a median of 13.75.

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Finally, we should also recognize that SID has a P/CF ratio of 3.21. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 3.23. Within the past 12 months, SID's P/CF has been as high as 4.99 and as low as 1.73, with a median of 2.91.

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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Zacks Investment Research