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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Avis Budget Group (CAR - Free Report) . CAR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 4.80, which compares to its industry's average of 10.88. Over the past 52 weeks, CAR's Forward P/E has been as high as 37.43 and as low as 4.80, with a median of 10.97.
Investors should also note that CAR holds a PEG ratio of 0.25. 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. CAR's PEG compares to its industry's average PEG of 0.61. CAR's PEG has been as high as 1.36 and as low as 0.16, with a median of 0.48, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CAR has a P/S ratio of 0.7. This compares to its industry's average P/S of 0.95.
Another great Business - Services stock you could consider is IBEX Limited (IBEX - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, IBEX Limited has a P/B ratio of 3.22 while its industry's price-to-book ratio sits at 1.96. For IBEX, this valuation metric has been as high as 5.22, as low as 2.56, with a median of 3.24 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Avis Budget Group and IBEX Limited are likely undervalued currently. And when considering the strength of its earnings outlook, CAR and IBEX sticks out as one of the market's strongest value stocks.
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 >>
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Avis Budget Group (CAR - Free Report) . CAR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 4.80, which compares to its industry's average of 10.88. Over the past 52 weeks, CAR's Forward P/E has been as high as 37.43 and as low as 4.80, with a median of 10.97.
Investors should also note that CAR holds a PEG ratio of 0.25. 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. CAR's PEG compares to its industry's average PEG of 0.61. CAR's PEG has been as high as 1.36 and as low as 0.16, with a median of 0.48, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CAR has a P/S ratio of 0.7. This compares to its industry's average P/S of 0.95.
Another great Business - Services stock you could consider is IBEX Limited (IBEX - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, IBEX Limited has a P/B ratio of 3.22 while its industry's price-to-book ratio sits at 1.96. For IBEX, this valuation metric has been as high as 5.22, as low as 2.56, with a median of 3.24 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Avis Budget Group and IBEX Limited are likely undervalued currently. And when considering the strength of its earnings outlook, CAR and IBEX sticks out as one of the market's strongest value stocks.
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 >>
Get the latest research report on CAR - FREE
Get the latest research report on IBEX - FREE