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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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Steelcase (SCS - Free Report) . SCS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that SCS has a P/B ratio of 2.21. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. SCS's current P/B looks attractive when compared to its industry's average P/B of 2.79. Over the past 12 months, SCS's P/B has been as high as 2.65 and as low as 1.89, with a median of 2.05.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SCS has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.76.
Finally, we should also recognize that SCS has a P/CF ratio of 10.63. 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. SCS's P/CF compares to its industry's average P/CF of 10.88. Over the past year, SCS's P/CF has been as high as 13.75 and as low as 9.28, with a median of 11.21.
These are just a handful of the figures considered in Steelcase'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 SCS is an impressive value stock right now.
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Is Steelcase (SCS) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Steelcase (SCS - Free Report) . SCS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that SCS has a P/B ratio of 2.21. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. SCS's current P/B looks attractive when compared to its industry's average P/B of 2.79. Over the past 12 months, SCS's P/B has been as high as 2.65 and as low as 1.89, with a median of 2.05.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SCS has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.76.
Finally, we should also recognize that SCS has a P/CF ratio of 10.63. 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. SCS's P/CF compares to its industry's average P/CF of 10.88. Over the past year, SCS's P/CF has been as high as 13.75 and as low as 9.28, with a median of 11.21.
These are just a handful of the figures considered in Steelcase'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 SCS is an impressive value stock right now.