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 company value investors might notice is North American Construction Group (NOA - Free Report) . NOA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.25, while its industry has an average P/E of 16.04. Over the past year, NOA's Forward P/E has been as high as 10.39 and as low as 6.03, with a median of 8.16.
We should also highlight that NOA has a P/B ratio of 2.14. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. NOA's current P/B looks attractive when compared to its industry's average P/B of 2.21. Over the past year, NOA's P/B has been as high as 2.56 and as low as 1.52, with a median of 2.02.
Finally, we should also recognize that NOA has a P/CF ratio of 3.97. 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 11.18. NOA's P/CF has been as high as 5.19 and as low as 2.73, with a median of 3.78, all within the past year.
Investors could also keep in mind Sterling Construction (STRL - Free Report) , an Building Products - Heavy Construction stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Sterling Construction sports a P/B ratio of 2.51 as well; this compares to its industry's price-to-book ratio of 2.21. In the past 52 weeks, STRL's P/B has been as high as 2.60, as low as 1.73, with a median of 2.20.
These figures are just a handful of the metrics value investors tend to look at, but they help show that North American Construction Group and Sterling Construction are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NOA and STRL feels like a great value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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 company value investors might notice is North American Construction Group (NOA - Free Report) . NOA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.25, while its industry has an average P/E of 16.04. Over the past year, NOA's Forward P/E has been as high as 10.39 and as low as 6.03, with a median of 8.16.
We should also highlight that NOA has a P/B ratio of 2.14. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. NOA's current P/B looks attractive when compared to its industry's average P/B of 2.21. Over the past year, NOA's P/B has been as high as 2.56 and as low as 1.52, with a median of 2.02.
Finally, we should also recognize that NOA has a P/CF ratio of 3.97. 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 11.18. NOA's P/CF has been as high as 5.19 and as low as 2.73, with a median of 3.78, all within the past year.
Investors could also keep in mind Sterling Construction (STRL - Free Report) , an Building Products - Heavy Construction stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Sterling Construction sports a P/B ratio of 2.51 as well; this compares to its industry's price-to-book ratio of 2.21. In the past 52 weeks, STRL's P/B has been as high as 2.60, as low as 1.73, with a median of 2.20.
These figures are just a handful of the metrics value investors tend to look at, but they help show that North American Construction Group and Sterling Construction are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NOA and STRL feels like a great value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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