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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Allstate (ALL - Free Report) . ALL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.03, which compares to its industry's average of 23.72. ALL's Forward P/E has been as high as 13.42 and as low as 8.42, with a median of 10.74, all within the past year.
ALL is also sporting a PEG ratio of 1.08. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALL's PEG compares to its industry's average PEG of 2.80. Within the past year, ALL's PEG has been as high as 1.61 and as low as 1.01, with a median of 1.29.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ALL has a P/S ratio of 0.72. This compares to its industry's average P/S of 1.16.
Finally, we should also recognize that ALL has a P/CF ratio of 6.65. 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 6.96. ALL's P/CF has been as high as 10.01 and as low as 6.18, with a median of 8.34, all within the past year.
These are only a few of the key metrics included in Allstate'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, ALL looks like an impressive value stock at the moment.
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Is Allstate (ALL) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Allstate (ALL - Free Report) . ALL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.03, which compares to its industry's average of 23.72. ALL's Forward P/E has been as high as 13.42 and as low as 8.42, with a median of 10.74, all within the past year.
ALL is also sporting a PEG ratio of 1.08. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALL's PEG compares to its industry's average PEG of 2.80. Within the past year, ALL's PEG has been as high as 1.61 and as low as 1.01, with a median of 1.29.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ALL has a P/S ratio of 0.72. This compares to its industry's average P/S of 1.16.
Finally, we should also recognize that ALL has a P/CF ratio of 6.65. 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 6.96. ALL's P/CF has been as high as 10.01 and as low as 6.18, with a median of 8.34, all within the past year.
These are only a few of the key metrics included in Allstate'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, ALL looks like an impressive value stock at the moment.