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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Industrias Bachoco (IBA - Free Report) . IBA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 8.10. This compares to its industry's average Forward P/E of 13.60. Over the past 52 weeks, IBA's Forward P/E has been as high as 10.48 and as low as 7.68, with a median of 8.98.
Another notable valuation metric for IBA is its P/B ratio of 0.87. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. IBA's current P/B looks attractive when compared to its industry's average P/B of 2.11. Within the past 52 weeks, IBA's P/B has been as high as 1 and as low as 0.78, with a median of 0.90.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. IBA has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.56.
Finally, investors will want to recognize that IBA has a P/CF ratio of 5.38. 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 9.44. Over the past 52 weeks, IBA's P/CF has been as high as 6.92 and as low as 4.83, with a median of 6.12.
Investors could also keep in mind Pilgrim's Pride (PPC - Free Report) , an Food - Meat Products stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Pilgrim's Pride is currently trading with a Forward P/E ratio of 9.61 while its PEG ratio sits at 0.77. Both of the company's metrics compare favorably to its industry's average P/E of 13.60 and average PEG ratio of 1.47.
PPC's Forward P/E has been as high as 13.41 and as low as 7.67, with a median of 10.64. During the same time period, its PEG ratio has been as high as 1.05, as low as 0.28, with a median of 0.41.
Pilgrim's Pride also has a P/B ratio of 2.63 compared to its industry's price-to-book ratio of 2.11. Over the past year, its P/B ratio has been as high as 2.96, as low as 1.94, with a median of 2.61.
Value investors will likely look at more than just these metrics, but the above data helps show that Industrias Bachoco and Pilgrim's Pride are likely undervalued currently. And when considering the strength of its earnings outlook, IBA and PPC sticks out as one of the market's strongest value stocks.
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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Industrias Bachoco (IBA - Free Report) . IBA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 8.10. This compares to its industry's average Forward P/E of 13.60. Over the past 52 weeks, IBA's Forward P/E has been as high as 10.48 and as low as 7.68, with a median of 8.98.
Another notable valuation metric for IBA is its P/B ratio of 0.87. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. IBA's current P/B looks attractive when compared to its industry's average P/B of 2.11. Within the past 52 weeks, IBA's P/B has been as high as 1 and as low as 0.78, with a median of 0.90.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. IBA has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.56.
Finally, investors will want to recognize that IBA has a P/CF ratio of 5.38. 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 9.44. Over the past 52 weeks, IBA's P/CF has been as high as 6.92 and as low as 4.83, with a median of 6.12.
Investors could also keep in mind Pilgrim's Pride (PPC - Free Report) , an Food - Meat Products stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Pilgrim's Pride is currently trading with a Forward P/E ratio of 9.61 while its PEG ratio sits at 0.77. Both of the company's metrics compare favorably to its industry's average P/E of 13.60 and average PEG ratio of 1.47.
PPC's Forward P/E has been as high as 13.41 and as low as 7.67, with a median of 10.64. During the same time period, its PEG ratio has been as high as 1.05, as low as 0.28, with a median of 0.41.
Pilgrim's Pride also has a P/B ratio of 2.63 compared to its industry's price-to-book ratio of 2.11. Over the past year, its P/B ratio has been as high as 2.96, as low as 1.94, with a median of 2.61.
Value investors will likely look at more than just these metrics, but the above data helps show that Industrias Bachoco and Pilgrim's Pride are likely undervalued currently. And when considering the strength of its earnings outlook, IBA and PPC sticks out as one of the market's strongest value stocks.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
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