Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is BorgWarner (BWA - Free Report) . BWA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.80, while its industry has an average P/E of 21.07. BWA's Forward P/E has been as high as 10.16 and as low as 6.47, with a median of 8.47, all within the past year.
Investors should also note that BWA holds a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BWA's PEG compares to its industry's average PEG of 1.05. Over the past 52 weeks, BWA's PEG has been as high as 0.73 and as low as 0.24, with a median of 0.30.
Another valuation metric that we should highlight is BWA's P/B ratio of 1.43. The P/B ratio is used to compare a stock's market value with 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 2.98. Over the past 12 months, BWA's P/B has been as high as 1.58 and as low as 1.04, with a median of 1.35.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BWA has a P/S ratio of 0.66. This compares to its industry's average P/S of 0.84.
Value investors will likely look at more than just these metrics, but the above data helps show that BorgWarner is likely undervalued currently. And when considering the strength of its earnings outlook, BWA sticks out at as one of the market's strongest value stocks.
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is BorgWarner (BWA - Free Report) . BWA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.80, while its industry has an average P/E of 21.07. BWA's Forward P/E has been as high as 10.16 and as low as 6.47, with a median of 8.47, all within the past year.
Investors should also note that BWA holds a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BWA's PEG compares to its industry's average PEG of 1.05. Over the past 52 weeks, BWA's PEG has been as high as 0.73 and as low as 0.24, with a median of 0.30.
Another valuation metric that we should highlight is BWA's P/B ratio of 1.43. The P/B ratio is used to compare a stock's market value with 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 2.98. Over the past 12 months, BWA's P/B has been as high as 1.58 and as low as 1.04, with a median of 1.35.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BWA has a P/S ratio of 0.66. This compares to its industry's average P/S of 0.84.
Value investors will likely look at more than just these metrics, but the above data helps show that BorgWarner is likely undervalued currently. And when considering the strength of its earnings outlook, BWA sticks out at as one of the market's strongest value stocks.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Get the latest research report on BWA - FREE