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.
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 value investors might notice is Verso Corporation . VRS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 5.54. This compares to its industry's average Forward P/E of 7.53. Over the past 52 weeks, VRS's Forward P/E has been as high as 20.38 and as low as -15.34, with a median of 7.84.
We should also highlight that VRS has a P/B ratio of 1.09. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.95. Over the past 12 months, VRS's P/B has been as high as 1.55 and as low as 0.35, with a median of 0.96.
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. VRS has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.66.
Finally, investors will want to recognize that VRS has a P/CF ratio of 3.64. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.05. Over the past year, VRS's P/CF has been as high as 7.28 and as low as 1.07, with a median of 5.79.
These are only a few of the key metrics included in Verso Corporation's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, VRS looks like an impressive value stock at the moment.
Image: Bigstock
Are Investors Undervaluing Verso Corporation (VRS) 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.
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 value investors might notice is Verso Corporation . VRS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 5.54. This compares to its industry's average Forward P/E of 7.53. Over the past 52 weeks, VRS's Forward P/E has been as high as 20.38 and as low as -15.34, with a median of 7.84.
We should also highlight that VRS has a P/B ratio of 1.09. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.95. Over the past 12 months, VRS's P/B has been as high as 1.55 and as low as 0.35, with a median of 0.96.
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. VRS has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.66.
Finally, investors will want to recognize that VRS has a P/CF ratio of 3.64. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.05. Over the past year, VRS's P/CF has been as high as 7.28 and as low as 1.07, with a median of 5.79.
These are only a few of the key metrics included in Verso Corporation's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, VRS looks like an impressive value stock at the moment.