The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is ON Semiconductor Corp. (ON - Free Report) . ON is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.31, while its industry has an average P/E of 16.89. Over the past 52 weeks, ON's Forward P/E has been as high as 15.81 and as low as 10.35, with a median of 12.87.
Another valuation metric that we should highlight is ON's P/B ratio of 3.35. 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 3.48. Over the past year, ON's P/B has been as high as 4.14 and as low as 2.94, with a median of 3.57.
Finally, investors will want to recognize that ON has a P/CF ratio of 7.48. 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. ON's current P/CF looks attractive when compared to its industry's average P/CF of 15.47. Within the past 12 months, ON's P/CF has been as high as 10.55 and as low as 6.89, with a median of 8.40.
Value investors will likely look at more than just these metrics, but the above data helps show that ON Semiconductor Corp. Is likely undervalued currently. And when considering the strength of its earnings outlook, ON sticks out at as one of the market's strongest value stocks.
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 >>
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is ON Semiconductor Corp. (ON - Free Report) . ON is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.31, while its industry has an average P/E of 16.89. Over the past 52 weeks, ON's Forward P/E has been as high as 15.81 and as low as 10.35, with a median of 12.87.
Another valuation metric that we should highlight is ON's P/B ratio of 3.35. 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 3.48. Over the past year, ON's P/B has been as high as 4.14 and as low as 2.94, with a median of 3.57.
Finally, investors will want to recognize that ON has a P/CF ratio of 7.48. 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. ON's current P/CF looks attractive when compared to its industry's average P/CF of 15.47. Within the past 12 months, ON's P/CF has been as high as 10.55 and as low as 6.89, with a median of 8.40.
Value investors will likely look at more than just these metrics, but the above data helps show that ON Semiconductor Corp. Is likely undervalued currently. And when considering the strength of its earnings outlook, ON sticks out at as one of the market's strongest value stocks.
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 >>
Get the latest research report on ON - FREE