Should Value Investors Buy Randstad Holding NV (RANJY) Stock?

RANJY

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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 stock to keep an eye on is Randstad Holding NV (RANJY - Free Report) . RANJY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 15.97, while its industry has an average P/E of 17.77. RANJY's Forward P/E has been as high as 20.99 and as low as 7.02, with a median of 17.39, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. RANJY has a P/S ratio of 0.54. This compares to its industry's average P/S of 0.56.

These are only a few of the key metrics included in Randstad Holding NV'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, RANJY looks like an impressive value stock at the moment.

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