Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Volvo (VLVLY - Free Report) . VLVLY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.02 right now. For comparison, its industry sports an average P/E of 21.63. Over the last 12 months, VLVLY's Forward P/E has been as high as 13.07 and as low as 8.95, with a median of 10.61.
Investors will also notice that VLVLY has a PEG ratio of 0.78. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VLVLY's industry has an average PEG of 1.32 right now. VLVLY's PEG has been as high as 0.78 and as low as 0.54, with a median of 0.67, all within the past year.
Finally, investors should note that VLVLY has a P/CF ratio of 8.67. 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. VLVLY's current P/CF looks attractive when compared to its industry's average P/CF of 31.98. VLVLY's P/CF has been as high as 8.70 and as low as 6.31, with a median of 7.23, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Volvo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VLVLY feels like a great value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Volvo (VLVLY - Free Report) . VLVLY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.02 right now. For comparison, its industry sports an average P/E of 21.63. Over the last 12 months, VLVLY's Forward P/E has been as high as 13.07 and as low as 8.95, with a median of 10.61.
Investors will also notice that VLVLY has a PEG ratio of 0.78. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VLVLY's industry has an average PEG of 1.32 right now. VLVLY's PEG has been as high as 0.78 and as low as 0.54, with a median of 0.67, all within the past year.
Finally, investors should note that VLVLY has a P/CF ratio of 8.67. 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. VLVLY's current P/CF looks attractive when compared to its industry's average P/CF of 31.98. VLVLY's P/CF has been as high as 8.70 and as low as 6.31, with a median of 7.23, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Volvo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VLVLY feels like a great value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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