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Ternium S.A. (NYSE:TX) is a manufacturer of flat and long steel products with operating facilities in Mexico, Brazil, Argentina, Colombia, the southern United States, and Central America. TX is also the leading steel company in Latin America with highly integrated processes to manufacture steel and value-added products. At last glance, TX is trading flat at $38.02.

Ternium stock has increased about 5% year-over-year and TX is currently up 9% since its June 2021 bottom of $34.96. However, shares of TX have dropped 15% year-to-date and are down 10% over the past month. The share are also seeing new overhead pressure just above the $38 level.

TX is expected to see significant declines in sales and earnings over the coming years, which has led Ternium stock to trade at very low valuation metrics. Ternium stock provides a forward price-earnings ratio of 3.02 and a price-sales ratio of 0.44, with estimates suggesting the steel name will end fiscal 2022 with a 38.2% decrease in earnings and a 1.8% increase in revenues. TX is also expected to report an additional 37.9% decrease in earnings, as well as an 11% drop in revenues for fiscal 2023.

The steel company now offers a very attractive dividend yield of 6.84% with a forward dividend of $2.60. Ternium also maintains a solid balance sheet with $2.92 billion in cash and $1.62 billion in total debt, providing a decent amount of safety for the business’ longevity.

Furthermore, even at TX's estimated 2023 EPS (earnings per share) of 7.48, Ternium stock would provide a great forward price-earnings ratio of 5.08, meaning the steel business would have to see considerably larger declines before valuation becomes an issue. Overall, with TX’s negative estimates for the coming years and Ternium stock’s continued bearish form, Ternium stock could prove to be a great buying opportunity for dividend investors.

Its also worth noting that here remains plenty of room for downgrades, should the optimism surrounding TX unwind. Heading into today's trading, three out of the four covering brokerages sport a "strong buy" recommendation.

Lastly, What's more, Ternium stock has a knack for outperforming options traders' volatility expectations, according to its Schaeffer's Volatility Scorecard (SVS) of 97 (out of 100).

Stagflation is an ugly mix of low economic growth punctuated by high unemployment. And at the root of it all is inflation. For a long time, many economists believed that stagflation was not possible. However, the 1970s changed that thinking. Not only were U.S. consumers facing high inflation, they were also dealing with high unemployment.  

And according to some analysts, history may be getting ready to repeat itself. While economists seem to be split on the probability of a recession, there is growing concern that the United States is entering a period of stagflation. In an effort to combat inflation, the Federal Reserve is pledging to aggressively increase interest rates. There's already evidence of slowing economic growth and waning demand. The next shoe to drop may come in the employment numbers.

This means that investors need to turn their attention to stocks that have the attributes to combat stagflation. This includes companies that have the potential to deliver strong free cash flow. One reason for this is that a healthy cash flow can be applied to reward shareholders with a dividend. And that can boost the total return. Here are seven stocks that can help investors do just that.

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In this episode, Kate sits down with Kyrill Astur, CEO of portfolio management firm Centerfin. Kyrill brings a background from Wall Street and hedge funds to his current role helping individual investors navigate the market challenges while investing for their future.

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