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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Titan International . TWI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.84. This compares to its industry's average Forward P/E of 15.02. Over the past year, TWI's Forward P/E has been as high as 18.63 and as low as 5.13, with a median of 9.04.
Investors should also recognize that TWI has a P/B ratio of 2.67. The P/B is a method of comparing a stock's market value to 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 5.13. Within the past 52 weeks, TWI's P/B has been as high as 5 and as low as 2.38, with a median of 3.04.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TWI has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.98.
Finally, investors should note that TWI has a P/CF ratio of 4.19. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TWI's current P/CF looks attractive when compared to its industry's average P/CF of 12.75. Over the past year, TWI's P/CF has been as high as 12.45 and as low as 3.73, with a median of 6.46.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Titan International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TWI feels like a great value stock at the moment.
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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Titan International . TWI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.84. This compares to its industry's average Forward P/E of 15.02. Over the past year, TWI's Forward P/E has been as high as 18.63 and as low as 5.13, with a median of 9.04.
Investors should also recognize that TWI has a P/B ratio of 2.67. The P/B is a method of comparing a stock's market value to 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 5.13. Within the past 52 weeks, TWI's P/B has been as high as 5 and as low as 2.38, with a median of 3.04.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TWI has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.98.
Finally, investors should note that TWI has a P/CF ratio of 4.19. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TWI's current P/CF looks attractive when compared to its industry's average P/CF of 12.75. Over the past year, TWI's P/CF has been as high as 12.45 and as low as 3.73, with a median of 6.46.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Titan International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TWI 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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