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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Arch Coal (ARCH - Free Report) . ARCH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.06, while its industry has an average P/E of 8.62. Over the last 12 months, ARCH's Forward P/E has been as high as 9.97 and as low as 5.53, with a median of 7.24.
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. ARCH has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.39.
Value investors will likely look at more than just these metrics, but the above data helps show that Arch Coal is likely undervalued currently. And when considering the strength of its earnings outlook, ARCH sticks out at as one of the market's strongest value stocks.
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Is Arch Coal (ARCH) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Arch Coal (ARCH - Free Report) . ARCH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.06, while its industry has an average P/E of 8.62. Over the last 12 months, ARCH's Forward P/E has been as high as 9.97 and as low as 5.53, with a median of 7.24.
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. ARCH has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.39.
Value investors will likely look at more than just these metrics, but the above data helps show that Arch Coal is likely undervalued currently. And when considering the strength of its earnings outlook, ARCH sticks out at as one of the market's strongest value stocks.