The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Fomento Economico Mexicano (FMX - Free Report) . FMX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 17.67. This compares to its industry's average Forward P/E of 21.79. Over the past year, FMX's Forward P/E has been as high as 27.10 and as low as 17.67, with a median of 21.67.
FMX is also sporting a PEG ratio of 2.01. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FMX's industry currently sports an average PEG of 2.79. Over the last 12 months, FMX's PEG has been as high as 2.93 and as low as 1.22, with a median of 1.48.
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. FMX has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.24.
Finally, we should also recognize that FMX has a P/CF ratio of 7.52. 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. This stock's P/CF looks attractive against its industry's average P/CF of 20.78. Within the past 12 months, FMX's P/CF has been as high as 18.43 and as low as 7.26, with a median of 10.58.
Value investors will likely look at more than just these metrics, but the above data helps show that Fomento Economico Mexicano is likely undervalued currently. And when considering the strength of its earnings outlook, FMX sticks out at as one of the market's strongest value stocks.
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Fomento Economico Mexicano (FMX - Free Report) . FMX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 17.67. This compares to its industry's average Forward P/E of 21.79. Over the past year, FMX's Forward P/E has been as high as 27.10 and as low as 17.67, with a median of 21.67.
FMX is also sporting a PEG ratio of 2.01. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FMX's industry currently sports an average PEG of 2.79. Over the last 12 months, FMX's PEG has been as high as 2.93 and as low as 1.22, with a median of 1.48.
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. FMX has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.24.
Finally, we should also recognize that FMX has a P/CF ratio of 7.52. 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. This stock's P/CF looks attractive against its industry's average P/CF of 20.78. Within the past 12 months, FMX's P/CF has been as high as 18.43 and as low as 7.26, with a median of 10.58.
Value investors will likely look at more than just these metrics, but the above data helps show that Fomento Economico Mexicano is likely undervalued currently. And when considering the strength of its earnings outlook, FMX sticks out at as one of the market's strongest value stocks.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
Download Oil Market on Fire today, absolutely free.
Get the latest research report on FMX - FREE