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.
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 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.
Investors should also recognize that NUE has a P/B ratio of 2.30. Investors use the P/B ratio to look at a stock’s market value versus 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 3.55. Over the past year, NUE’s P/B has been as high as 2.92 and as low as 1.31, with a median of 2.08.
Finally, investors should note that NUE has a P/CF ratio of 5.64. 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. This company’s current P/CF looks solid when compared to its industry’s average P/CF of 10.48. NUE’s P/CF has been as high as 16.21 and as low as 4.82, with a median of 10.68, all within the past year.
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.