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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, 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 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 company to watch right now is GMS Inc. (GMS - Free Report) . GMS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.25 right now. For comparison, its industry sports an average P/E of 18.32. Over the last 12 months, GMS's Forward P/E has been as high as 17.69 and as low as 7.25, with a median of 13.84.
We also note that GMS holds a PEG ratio of 1.04. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GMS's industry currently sports an average PEG of 1.21. GMS's PEG has been as high as 2.53 and as low as 1.04, with a median of 1.81, all within the past year.
Finally, investors should note that GMS has a P/CF ratio of 8.03. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.70. Within the past 12 months, GMS's P/CF has been as high as 12.85 and as low as 8.03, with a median of 10.03.
Value investors will likely look at more than just these metrics, but the above data helps show that GMS Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, GMS sticks out at as one of the market's strongest value stocks.
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Is GMS Inc. (GMS) 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, 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 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 company to watch right now is GMS Inc. (GMS - Free Report) . GMS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.25 right now. For comparison, its industry sports an average P/E of 18.32. Over the last 12 months, GMS's Forward P/E has been as high as 17.69 and as low as 7.25, with a median of 13.84.
We also note that GMS holds a PEG ratio of 1.04. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GMS's industry currently sports an average PEG of 1.21. GMS's PEG has been as high as 2.53 and as low as 1.04, with a median of 1.81, all within the past year.
Finally, investors should note that GMS has a P/CF ratio of 8.03. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.70. Within the past 12 months, GMS's P/CF has been as high as 12.85 and as low as 8.03, with a median of 10.03.
Value investors will likely look at more than just these metrics, but the above data helps show that GMS Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, GMS sticks out at as one of the market's strongest value stocks.