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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is Spirit (SAVE - Free Report) . SAVE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.37 right now. For comparison, its industry sports an average P/E of 9.21. Over the last 12 months, SAVE's Forward P/E has been as high as 13.49 and as low as 6.19, with a median of 8.02.
Investors should also note that SAVE holds a PEG ratio of 0.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SAVE's industry has an average PEG of 0.65 right now. Over the past 52 weeks, SAVE's PEG has been as high as 0.47 and as low as 0.25, with a median of 0.34.
Another valuation metric that we should highlight is SAVE's P/B ratio of 1.29. The P/B ratio is used to compare a stock's market value with 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 2.63. SAVE's P/B has been as high as 2.23 and as low as 1.04, with a median of 1.65, over the past year.
Finally, our model also underscores that SAVE has a P/CF ratio of 4.99. 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 5.88. Over the past year, SAVE's P/CF has been as high as 12.69 and as low as 4.01, with a median of 7.05.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Spirit is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SAVE feels like a great value stock at the moment.
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Is Spirit (SAVE) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is Spirit (SAVE - Free Report) . SAVE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.37 right now. For comparison, its industry sports an average P/E of 9.21. Over the last 12 months, SAVE's Forward P/E has been as high as 13.49 and as low as 6.19, with a median of 8.02.
Investors should also note that SAVE holds a PEG ratio of 0.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SAVE's industry has an average PEG of 0.65 right now. Over the past 52 weeks, SAVE's PEG has been as high as 0.47 and as low as 0.25, with a median of 0.34.
Another valuation metric that we should highlight is SAVE's P/B ratio of 1.29. The P/B ratio is used to compare a stock's market value with 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 2.63. SAVE's P/B has been as high as 2.23 and as low as 1.04, with a median of 1.65, over the past year.
Finally, our model also underscores that SAVE has a P/CF ratio of 4.99. 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 5.88. Over the past year, SAVE's P/CF has been as high as 12.69 and as low as 4.01, with a median of 7.05.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Spirit is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SAVE feels like a great value stock at the moment.