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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is LKQ (LKQ - Free Report) . LKQ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for LKQ is its P/B ratio of 2.72. 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. This stock's P/B looks solid versus its industry's average P/B of 2.85. Within the past 52 weeks, LKQ's P/B has been as high as 2.96 and as low as 1.88, with a median of 2.54.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LKQ has a P/S ratio of 1.24. This compares to its industry's average P/S of 1.38.
Finally, investors should note that LKQ has a P/CF ratio of 12.29. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.66. Over the past 52 weeks, LKQ's P/CF has been as high as 14.67 and as low as 11.07, with a median of 12.63.
Value investors will likely look at more than just these metrics, but the above data helps show that LKQ is likely undervalued currently. And when considering the strength of its earnings outlook, LKQ sticks out at as one of the market's strongest value stocks.
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Is LKQ (LKQ) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is LKQ (LKQ - Free Report) . LKQ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for LKQ is its P/B ratio of 2.72. 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. This stock's P/B looks solid versus its industry's average P/B of 2.85. Within the past 52 weeks, LKQ's P/B has been as high as 2.96 and as low as 1.88, with a median of 2.54.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LKQ has a P/S ratio of 1.24. This compares to its industry's average P/S of 1.38.
Finally, investors should note that LKQ has a P/CF ratio of 12.29. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.66. Over the past 52 weeks, LKQ's P/CF has been as high as 14.67 and as low as 11.07, with a median of 12.63.
Value investors will likely look at more than just these metrics, but the above data helps show that LKQ is likely undervalued currently. And when considering the strength of its earnings outlook, LKQ sticks out at as one of the market's strongest value stocks.