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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Adecco (AHEXY - Free Report) . AHEXY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.27, which compares to its industry's average of 24.83. Over the last 12 months, AHEXY's Forward P/E has been as high as 13.67 and as low as -290.52, with a median of 8.96.
Finally, investors will want to recognize that AHEXY has a P/CF ratio of 7.66. 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 stock's P/CF looks attractive against its industry's average P/CF of 17.32. Over the past 52 weeks, AHEXY's P/CF has been as high as 9.60 and as low as 5.50, with a median of 7.08.
Cap Gemini (CGEMY - Free Report) may be another strong Outsourcing stock to add to your shortlist. CGEMY is a # 2 (Buy) stock with a Value grade of A.
Shares of Cap Gemini currently holds a Forward P/E ratio of 16.04, and its PEG ratio is 1.28. In comparison, its industry sports average P/E and PEG ratios of 24.83 and 2.34.
CGEMY's Forward P/E has been as high as 21.31 and as low as 13.47, with a median of 16.92. During the same time period, its PEG ratio has been as high as 1.77, as low as 1.12, with a median of 1.35.
Additionally, Cap Gemini has a P/B ratio of 3.06 while its industry's price-to-book ratio sits at 15.94. For CGEMY, this valuation metric has been as high as 4, as low as 2.56, with a median of 3.20 over the past year.
These are just a handful of the figures considered in Adecco and Cap Gemini'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 AHEXY and CGEMY is an impressive value stock right now.
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Should Value Investors Buy Adecco (AHEXY) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Adecco (AHEXY - Free Report) . AHEXY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.27, which compares to its industry's average of 24.83. Over the last 12 months, AHEXY's Forward P/E has been as high as 13.67 and as low as -290.52, with a median of 8.96.
Finally, investors will want to recognize that AHEXY has a P/CF ratio of 7.66. 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 stock's P/CF looks attractive against its industry's average P/CF of 17.32. Over the past 52 weeks, AHEXY's P/CF has been as high as 9.60 and as low as 5.50, with a median of 7.08.
Cap Gemini (CGEMY - Free Report) may be another strong Outsourcing stock to add to your shortlist. CGEMY is a # 2 (Buy) stock with a Value grade of A.
Shares of Cap Gemini currently holds a Forward P/E ratio of 16.04, and its PEG ratio is 1.28. In comparison, its industry sports average P/E and PEG ratios of 24.83 and 2.34.
CGEMY's Forward P/E has been as high as 21.31 and as low as 13.47, with a median of 16.92. During the same time period, its PEG ratio has been as high as 1.77, as low as 1.12, with a median of 1.35.
Additionally, Cap Gemini has a P/B ratio of 3.06 while its industry's price-to-book ratio sits at 15.94. For CGEMY, this valuation metric has been as high as 4, as low as 2.56, with a median of 3.20 over the past year.
These are just a handful of the figures considered in Adecco and Cap Gemini'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 AHEXY and CGEMY is an impressive value stock right now.