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.
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.
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 SkyWest (SKYW - Free Report) . SKYW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.88 right now. For comparison, its industry sports an average P/E of 16.39. Over the past year, SKYW's Forward P/E has been as high as 11,210.77 and as low as -3,534.23, with a median of 11.34.
We also note that SKYW holds a PEG ratio of 0.89. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SKYW's industry currently sports an average PEG of 0.99. Over the last 12 months, SKYW's PEG has been as high as 1.84 and as low as 0.79, with a median of 0.98.
Another valuation metric that we should highlight is SKYW's P/B ratio of 1.40. 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 stock's P/B looks solid versus its industry's average P/B of 3.65. Within the past 52 weeks, SKYW's P/B has been as high as 1.40 and as low as 0.48, with a median of 0.85.
Finally, we should also recognize that SKYW has a P/CF ratio of 6.23. 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. SKYW's current P/CF looks attractive when compared to its industry's average P/CF of 7.53. Over the past 52 weeks, SKYW's P/CF has been as high as 6.95 and as low as 2.78, with a median of 4.98.
These are just a handful of the figures considered in SkyWest's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SKYW is an impressive value stock right now.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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.
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.
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 SkyWest (SKYW - Free Report) . SKYW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.88 right now. For comparison, its industry sports an average P/E of 16.39. Over the past year, SKYW's Forward P/E has been as high as 11,210.77 and as low as -3,534.23, with a median of 11.34.
We also note that SKYW holds a PEG ratio of 0.89. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SKYW's industry currently sports an average PEG of 0.99. Over the last 12 months, SKYW's PEG has been as high as 1.84 and as low as 0.79, with a median of 0.98.
Another valuation metric that we should highlight is SKYW's P/B ratio of 1.40. 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 stock's P/B looks solid versus its industry's average P/B of 3.65. Within the past 52 weeks, SKYW's P/B has been as high as 1.40 and as low as 0.48, with a median of 0.85.
Finally, we should also recognize that SKYW has a P/CF ratio of 6.23. 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. SKYW's current P/CF looks attractive when compared to its industry's average P/CF of 7.53. Over the past 52 weeks, SKYW's P/CF has been as high as 6.95 and as low as 2.78, with a median of 4.98.
These are just a handful of the figures considered in SkyWest's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SKYW is an impressive value stock right now.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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