In the last trading session, Posco (PKX) closed at USD 77.06, a move of + 0.3% compared to the previous day. The stock trailed the S&P 500’s daily gain of 0.36%.
To date, the steelmaker’s shares had gained 13.14% last month. At the same time, the basic materials sector rose 5.95%, while the S&P 500 rose 5.21%.
Investors are hoping for the strength of PKX when it comes to the next earnings release, which is expected to take place on April 26, 2021.
Investors might also notice the recent changes in analyst estimates for PKX. These revisions help highlight the ever-changing nature of short-term business trends. As such, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.
Based on our research, we believe these estimates are directly related to team-based stock movements. Investors can take advantage of this using the Zacks range. This model takes these changes in estimates into account and provides a simple, actionable rating system.
The Zacks Rank system ranges from No. 1 (strong buy) to No. 5 (strong sell) and has a proven, externally verified track record of outperformance. Since 1988, the # 1 stock has achieved an average annual return of + 25%. In the past month, Zack’s Consensus EPS estimate has increased 10.8%. PKX is currently a Zacks Rank 1 (Strong Buy).
Valuation is also important, so investors should note that PKX currently has a Forward P / E of 9.2. This rating represents a premium compared to the industry’s average Forward P / E of 8.83.
We should also mention that PKX has a PEG ratio of 1.84. This metric is used similarly to the famous P / E ratio, but the P / E ratio also takes into account the stock’s expected earnings growth rate. The steel making industry currently had an average PEG ratio of 0.58 at yesterday’s closing price.
The steel making industry is part of the basic materials sector. This industry currently has a Zacks industry ranking of 3 and is therefore among the top 2% of all over 250 industries.
The Zacks Industry Rank ranks best to worst in terms of the average Zacks rank of each company in each of these sectors. Our research shows that the industries with the top 50% outperform the bottom half by a factor of 2 to 1.
For more information on all of these metrics and more, visit Zacks.com.
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