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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Polaris Inc (PII - Free Report) . PII is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.16. This compares to its industry's average Forward P/E of 36.37. PII's Forward P/E has been as high as 21.87 and as low as 11.66, with a median of 13.85, all within the past year.
Another valuation metric that we should highlight is PII's P/B ratio of 7.39. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. PII's current P/B looks attractive when compared to its industry's average P/B of 7.45. PII's P/B has been as high as 8.76 and as low as 5.14, with a median of 7.31, over the past year.
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. PII has a P/S ratio of 1.09. This compares to its industry's average P/S of 1.61.
Finally, investors should note that PII has a P/CF ratio of 9.01. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 22.97. PII's P/CF has been as high as 11.59 and as low as 7.86, with a median of 9.61, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Polaris Inc is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PII feels like a great value stock at the moment.
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Polaris Inc (PII - Free Report) . PII is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.16. This compares to its industry's average Forward P/E of 36.37. PII's Forward P/E has been as high as 21.87 and as low as 11.66, with a median of 13.85, all within the past year.
Another valuation metric that we should highlight is PII's P/B ratio of 7.39. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. PII's current P/B looks attractive when compared to its industry's average P/B of 7.45. PII's P/B has been as high as 8.76 and as low as 5.14, with a median of 7.31, over the past year.
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. PII has a P/S ratio of 1.09. This compares to its industry's average P/S of 1.61.
Finally, investors should note that PII has a P/CF ratio of 9.01. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 22.97. PII's P/CF has been as high as 11.59 and as low as 7.86, with a median of 9.61, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Polaris Inc is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PII feels like a great value stock at the moment.
Buy 5 Stocks BEFORE Election Day
Biden or Trump? Zacks is releasing a FREE Special Report, Profit from the 2024 Presidential Election (no matter who wins).
Since 1950, presidential election years have been strong for the market. This report names 5 timely stocks to ride the wave of electoral excitement.
They include a medical manufacturer that gained +11,000% in the last 15 years… a rental company absolutely crushing its sector… an energy powerhouse planning to grow its already large dividend by 25%... an aerospace and defense standout that just landed a potentially $80 billion contract… and a giant chipmaker building huge plants in the U.S.
Don’t Wait. Download FREE >>
Get the latest research report on PII - FREE