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 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 Best Buy (BBY - Free Report) . BBY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.56 right now. For comparison, its industry sports an average P/E of 19.51. BBY's Forward P/E has been as high as 16.87 and as low as 11.41, with a median of 14.68, all within the past year.
Investors will also notice that BBY has a PEG ratio of 1.40. 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. BBY's PEG compares to its industry's average PEG of 1.98. Within the past year, BBY's PEG has been as high as 2.33 and as low as 1.26, with a median of 1.62.
We should also highlight that BBY has a P/B ratio of 6.38. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. BBY's current P/B looks attractive when compared to its industry's average P/B of 11.18. BBY's P/B has been as high as 8.28 and as low as 5.55, with a median of 6.81, over the past year.
Finally, our model also underscores that BBY has a P/CF ratio of 8.38. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BBY's current P/CF looks attractive when compared to its industry's average P/CF of 11.03. Over the past year, BBY's P/CF has been as high as 12.91 and as low as 8.18, with a median of 10.91.
Value investors will likely look at more than just these metrics, but the above data helps show that Best Buy is likely undervalued currently. And when considering the strength of its earnings outlook, BBY sticks out at as one of the market's strongest value stocks.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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 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 Best Buy (BBY - Free Report) . BBY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.56 right now. For comparison, its industry sports an average P/E of 19.51. BBY's Forward P/E has been as high as 16.87 and as low as 11.41, with a median of 14.68, all within the past year.
Investors will also notice that BBY has a PEG ratio of 1.40. 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. BBY's PEG compares to its industry's average PEG of 1.98. Within the past year, BBY's PEG has been as high as 2.33 and as low as 1.26, with a median of 1.62.
We should also highlight that BBY has a P/B ratio of 6.38. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. BBY's current P/B looks attractive when compared to its industry's average P/B of 11.18. BBY's P/B has been as high as 8.28 and as low as 5.55, with a median of 6.81, over the past year.
Finally, our model also underscores that BBY has a P/CF ratio of 8.38. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BBY's current P/CF looks attractive when compared to its industry's average P/CF of 11.03. Over the past year, BBY's P/CF has been as high as 12.91 and as low as 8.18, with a median of 10.91.
Value investors will likely look at more than just these metrics, but the above data helps show that Best Buy is likely undervalued currently. And when considering the strength of its earnings outlook, BBY sticks out at as one of the market's strongest value stocks.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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