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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Terex (TEX - Free Report) . TEX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.98 right now. For comparison, its industry sports an average P/E of 15.49. Over the past year, TEX's Forward P/E has been as high as 16.48 and as low as 6.36, with a median of 8.38.
Investors should also note that TEX holds a PEG ratio of 0.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TEX's PEG compares to its industry's average PEG of 1.12. Within the past year, TEX's PEG has been as high as 0.57 and as low as 0.36, with a median of 0.46.
Investors should also recognize that TEX has a P/B ratio of 2.81. 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. TEX's current P/B looks attractive when compared to its industry's average P/B of 6.34. TEX's P/B has been as high as 3 and as low as 1.73, with a median of 2.28, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TEX has a P/S ratio of 0.7. This compares to its industry's average P/S of 0.83.
Finally, investors should note that TEX has a P/CF ratio of 8.13. 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 11.30. Over the past 52 weeks, TEX's P/CF has been as high as 13.64 and as low as 5.62, with a median of 7.63.
These are just a handful of the figures considered in Terex's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TEX is an impressive value stock right now.
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Should Value Investors Buy Terex (TEX) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Terex (TEX - Free Report) . TEX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.98 right now. For comparison, its industry sports an average P/E of 15.49. Over the past year, TEX's Forward P/E has been as high as 16.48 and as low as 6.36, with a median of 8.38.
Investors should also note that TEX holds a PEG ratio of 0.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TEX's PEG compares to its industry's average PEG of 1.12. Within the past year, TEX's PEG has been as high as 0.57 and as low as 0.36, with a median of 0.46.
Investors should also recognize that TEX has a P/B ratio of 2.81. 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. TEX's current P/B looks attractive when compared to its industry's average P/B of 6.34. TEX's P/B has been as high as 3 and as low as 1.73, with a median of 2.28, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TEX has a P/S ratio of 0.7. This compares to its industry's average P/S of 0.83.
Finally, investors should note that TEX has a P/CF ratio of 8.13. 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 11.30. Over the past 52 weeks, TEX's P/CF has been as high as 13.64 and as low as 5.62, with a median of 7.63.
These are just a handful of the figures considered in Terex's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TEX is an impressive value stock right now.