While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 HP (HPQ - Free Report) . HPQ is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We also note that HPQ holds a PEG ratio of 0.91. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HPQ's PEG compares to its industry's average PEG of 1.97. HPQ's PEG has been as high as 4.30 and as low as 0.91, with a median of 1.30, all within the past year.
Finally, investors should note that HPQ has a P/CF ratio of 6.97. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. HPQ's P/CF compares to its industry's average P/CF of 27.35. Over the past year, HPQ's P/CF has been as high as 11.14 and as low as 6.82, with a median of 8.39.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HPQ feels like a great value stock at the moment.
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 >>
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 HP (HPQ - Free Report) . HPQ is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We also note that HPQ holds a PEG ratio of 0.91. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HPQ's PEG compares to its industry's average PEG of 1.97. HPQ's PEG has been as high as 4.30 and as low as 0.91, with a median of 1.30, all within the past year.
Finally, investors should note that HPQ has a P/CF ratio of 6.97. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. HPQ's P/CF compares to its industry's average P/CF of 27.35. Over the past year, HPQ's P/CF has been as high as 11.14 and as low as 6.82, with a median of 8.39.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HPQ feels like a great value stock at the moment.
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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