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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Huntington Ingalls Industries (HII - Free Report) . HII is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 15.98, while its industry has an average P/E of 18.53. Over the past 52 weeks, HII's Forward P/E has been as high as 17.82 and as low as 12.54, with a median of 14.55.
We should also highlight that HII has a P/B ratio of 2.65. 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. HII's current P/B looks attractive when compared to its industry's average P/B of 3.48. Within the past 52 weeks, HII's P/B has been as high as 2.87 and as low as 2.13, with a median of 2.48.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HII has a P/S ratio of 0.94. This compares to its industry's average P/S of 1.68.
Finally, investors should note that HII has a P/CF ratio of 10.50. 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. This stock's P/CF looks attractive against its industry's average P/CF of 20.99. HII's P/CF has been as high as 11.64 and as low as 8.23, with a median of 10.01, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Huntington Ingalls Industries is likely undervalued currently. And when considering the strength of its earnings outlook, HII sticks out at as one of the market's strongest value stocks.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Huntington Ingalls Industries (HII - Free Report) . HII is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 15.98, while its industry has an average P/E of 18.53. Over the past 52 weeks, HII's Forward P/E has been as high as 17.82 and as low as 12.54, with a median of 14.55.
We should also highlight that HII has a P/B ratio of 2.65. 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. HII's current P/B looks attractive when compared to its industry's average P/B of 3.48. Within the past 52 weeks, HII's P/B has been as high as 2.87 and as low as 2.13, with a median of 2.48.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HII has a P/S ratio of 0.94. This compares to its industry's average P/S of 1.68.
Finally, investors should note that HII has a P/CF ratio of 10.50. 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. This stock's P/CF looks attractive against its industry's average P/CF of 20.99. HII's P/CF has been as high as 11.64 and as low as 8.23, with a median of 10.01, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Huntington Ingalls Industries is likely undervalued currently. And when considering the strength of its earnings outlook, HII sticks out at as one of the market's strongest value stocks.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Get the latest research report on HII - FREE