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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Randstad Holding (RANJY - Free Report) . RANJY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.49. This compares to its industry's average Forward P/E of 15.87. RANJY's Forward P/E has been as high as 18.37 and as low as 11.57, with a median of 15.12, all within the past year.
Investors should also recognize that RANJY has a P/B ratio of 2.28. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. RANJY's current P/B looks attractive when compared to its industry's average P/B of 3.41. Over the past 12 months, RANJY's P/B has been as high as 2.86 and as low as 2.09, with a median of 2.46.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RANJY has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.84.
Finally, investors should note that RANJY has a P/CF ratio of 12.03. 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 22.64. RANJY's P/CF has been as high as 19.05 and as low as 11.05, with a median of 14.91, all within the past year.
If you're looking for another solid Staffing Firms value stock, take a look at SThree (STREF - Free Report) . STREF is a # 2 (Buy) stock with a Value score of A.
SThree sports a P/B ratio of 2.37 as well; this compares to its industry's price-to-book ratio of 3.41. In the past 52 weeks, STREF's P/B has been as high as 2.69, as low as 2.37, with a median of 2.37.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Randstad Holding and SThree are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RANJY and STREF 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Randstad Holding (RANJY - Free Report) . RANJY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.49. This compares to its industry's average Forward P/E of 15.87. RANJY's Forward P/E has been as high as 18.37 and as low as 11.57, with a median of 15.12, all within the past year.
Investors should also recognize that RANJY has a P/B ratio of 2.28. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. RANJY's current P/B looks attractive when compared to its industry's average P/B of 3.41. Over the past 12 months, RANJY's P/B has been as high as 2.86 and as low as 2.09, with a median of 2.46.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RANJY has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.84.
Finally, investors should note that RANJY has a P/CF ratio of 12.03. 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 22.64. RANJY's P/CF has been as high as 19.05 and as low as 11.05, with a median of 14.91, all within the past year.
If you're looking for another solid Staffing Firms value stock, take a look at SThree (STREF - Free Report) . STREF is a # 2 (Buy) stock with a Value score of A.
SThree sports a P/B ratio of 2.37 as well; this compares to its industry's price-to-book ratio of 3.41. In the past 52 weeks, STREF's P/B has been as high as 2.69, as low as 2.37, with a median of 2.37.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Randstad Holding and SThree are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RANJY and STREF feels like a great value stock at the moment.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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