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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Orix (IX - Free Report) . IX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.73. This compares to its industry's average Forward P/E of 10.14. Over the past year, IX's Forward P/E has been as high as 9.14 and as low as 6.73, with a median of 7.82.
IX is also sporting a PEG ratio of 0.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. IX's PEG compares to its industry's average PEG of 1.03. Within the past year, IX's PEG has been as high as 1.11 and as low as 0.85, with a median of 0.95.
Another notable valuation metric for IX is its P/B ratio of 0.80. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. IX's current P/B looks attractive when compared to its industry's average P/B of 2.03. IX's P/B has been as high as 1.03 and as low as 0.79, with a median of 0.88, over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Orix is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IX feels like a great value stock at the moment.
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Is Orix (IX) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Orix (IX - Free Report) . IX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.73. This compares to its industry's average Forward P/E of 10.14. Over the past year, IX's Forward P/E has been as high as 9.14 and as low as 6.73, with a median of 7.82.
IX is also sporting a PEG ratio of 0.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. IX's PEG compares to its industry's average PEG of 1.03. Within the past year, IX's PEG has been as high as 1.11 and as low as 0.85, with a median of 0.95.
Another notable valuation metric for IX is its P/B ratio of 0.80. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. IX's current P/B looks attractive when compared to its industry's average P/B of 2.03. IX's P/B has been as high as 1.03 and as low as 0.79, with a median of 0.88, over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Orix is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IX feels like a great value stock at the moment.