Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?
Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Ternium S.A. TX.
Ternium in Focus
TX may be an interesting play thanks to its forward PE of 7.96, its P/S ratio of 0.61, and its decent dividend yield of 4.2%. These factors suggest that Ternium is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that TX has decent revenue metrics to back up its earnings.
TERNIUM SA-ADR PE Ratio (TTM)
But before you think that Ternium is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 15.7% in the past 60 days, thanks to 1 upward revision in the past two months compared to none lower.
This estimate strength is actually enough to push TX to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. So really, Ternium is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Best Place to Start Your Stock Search
Today, you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
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
To read this article on Zacks.com click here.