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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is AES (AES - Free Report) . AES is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.09 right now. For comparison, its industry sports an average P/E of 13.96. Over the last 12 months, AES's Forward P/E has been as high as 13.65 and as low as 10.41, with a median of 11.97.
Investors will also notice that AES has a PEG ratio of 1.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AES's PEG compares to its industry's average PEG of 2.22. AES's PEG has been as high as 1.75 and as low as 1.18, with a median of 1.42, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AES has a P/S ratio of 1.12. This compares to its industry's average P/S of 2.25.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AES is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AES feels like a great value stock at the moment.
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Is AES (AES) a Great Value Stock 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is AES (AES - Free Report) . AES is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.09 right now. For comparison, its industry sports an average P/E of 13.96. Over the last 12 months, AES's Forward P/E has been as high as 13.65 and as low as 10.41, with a median of 11.97.
Investors will also notice that AES has a PEG ratio of 1.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AES's PEG compares to its industry's average PEG of 2.22. AES's PEG has been as high as 1.75 and as low as 1.18, with a median of 1.42, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AES has a P/S ratio of 1.12. This compares to its industry's average P/S of 2.25.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AES is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AES feels like a great value stock at the moment.