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.
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.
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 OMV (OMVJF - Free Report) . OMVJF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 3.27. This compares to its industry's average Forward P/E of 5.87. Over the last 12 months, OMVJF's Forward P/E has been as high as 7.59 and as low as 3.27, with a median of 5.30.
Investors should also recognize that OMVJF has a P/B ratio of 0.50. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.26. OMVJF's P/B has been as high as 0.87 and as low as 0.50, with a median of 0.70, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OMVJF has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.58.
Finally, our model also underscores that OMVJF has a P/CF ratio of 1.77. 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 stock's P/CF looks attractive against its industry's average P/CF of 5.41. Over the past 52 weeks, OMVJF's P/CF has been as high as 3.13 and as low as 1.77, with a median of 2.52.
Investors could also keep in mind Shell (SHEL - Free Report) , an Oil and Gas - Integrated - International stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of Shell are currently trading at a forward earnings multiple of 4.66 and a PEG ratio of 0.58 compared to its industry's P/E and PEG ratios of 5.87 and 0.45, respectively.
SHEL's price-to-earnings ratio has been as high as 9.46 and as low as 4.48, with a median of 7.08, while its PEG ratio has been as high as 2.37 and as low as 0.56, with a median of 1.76, all within the past year.
Additionally, Shell has a P/B ratio of 1.03 while its industry's price-to-book ratio sits at 1.26. For SHEL, this valuation metric has been as high as 1.31, as low as 0.85, with a median of 1.08 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that OMV and Shell are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OMVJF and SHEL feels like a great value stock at the moment.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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.
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.
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 OMV (OMVJF - Free Report) . OMVJF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 3.27. This compares to its industry's average Forward P/E of 5.87. Over the last 12 months, OMVJF's Forward P/E has been as high as 7.59 and as low as 3.27, with a median of 5.30.
Investors should also recognize that OMVJF has a P/B ratio of 0.50. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.26. OMVJF's P/B has been as high as 0.87 and as low as 0.50, with a median of 0.70, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OMVJF has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.58.
Finally, our model also underscores that OMVJF has a P/CF ratio of 1.77. 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 stock's P/CF looks attractive against its industry's average P/CF of 5.41. Over the past 52 weeks, OMVJF's P/CF has been as high as 3.13 and as low as 1.77, with a median of 2.52.
Investors could also keep in mind Shell (SHEL - Free Report) , an Oil and Gas - Integrated - International stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of Shell are currently trading at a forward earnings multiple of 4.66 and a PEG ratio of 0.58 compared to its industry's P/E and PEG ratios of 5.87 and 0.45, respectively.
SHEL's price-to-earnings ratio has been as high as 9.46 and as low as 4.48, with a median of 7.08, while its PEG ratio has been as high as 2.37 and as low as 0.56, with a median of 1.76, all within the past year.
Additionally, Shell has a P/B ratio of 1.03 while its industry's price-to-book ratio sits at 1.26. For SHEL, this valuation metric has been as high as 1.31, as low as 0.85, with a median of 1.08 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that OMV and Shell are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OMVJF and SHEL feels like a great value stock at the moment.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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