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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is AAR (AIR - Free Report) . AIR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 16.30, which compares to its industry's average of 28.30. Over the past 52 weeks, AIR's Forward P/E has been as high as 18.06 and as low as 11.08, with a median of 14.87.
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. AIR has a P/S ratio of 1.03. This compares to its industry's average P/S of 2.03.
Finally, we should also recognize that AIR has a P/CF ratio of 17.35. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 45.25. Within the past 12 months, AIR's P/CF has been as high as 17.93 and as low as 10.24, with a median of 15.07.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AAR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AIR feels like a great value stock at the moment.
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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is AAR (AIR - Free Report) . AIR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 16.30, which compares to its industry's average of 28.30. Over the past 52 weeks, AIR's Forward P/E has been as high as 18.06 and as low as 11.08, with a median of 14.87.
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. AIR has a P/S ratio of 1.03. This compares to its industry's average P/S of 2.03.
Finally, we should also recognize that AIR has a P/CF ratio of 17.35. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 45.25. Within the past 12 months, AIR's P/CF has been as high as 17.93 and as low as 10.24, with a median of 15.07.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AAR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AIR feels like a great value stock at the moment.
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 AIR - FREE