Core Viewpoint - Investors in the Steel - Producers sector should consider Posco (PKX) and United States Steel (X) for potential value investment opportunities [1] Group 1: Zacks Rank and Value Scores - Posco has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to United States Steel, which has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank strategy focuses on companies with positive earnings estimate revisions, while the Style Scores system evaluates companies based on specific traits [2] Group 2: Valuation Metrics - Posco's forward P/E ratio is 12.05, significantly lower than United States Steel's forward P/E of 26.61, suggesting that PKX may be undervalued [5] - Posco has a PEG ratio of 0.33, while United States Steel has a PEG ratio of 1.31, indicating that PKX is expected to grow earnings at a more favorable rate relative to its price [5] - Posco's P/B ratio is 0.33, compared to United States Steel's P/B of 0.84, further supporting the notion that PKX is undervalued [6] Group 3: Overall Assessment - Posco's improving earnings outlook and favorable valuation metrics suggest it is the superior value option compared to United States Steel [7]
PKX vs. X: Which Stock Is the Better Value Option?