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.
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 to watch right now is Allstate (ALL - Free Report) . ALL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.80, while its industry has an average P/E of 27.84. Over the past 52 weeks, ALL's Forward P/E has been as high as 16.80 and as low as 10.19, with a median of 11.38.
Investors should also note that ALL holds a PEG ratio of 1.30. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ALL's PEG compares to its industry's average PEG of 3.17. Over the past 52 weeks, ALL's PEG has been as high as 2.02 and as low as 1.22, with a median of 1.37.
Finally, investors should note that ALL has a P/CF ratio of 8.47. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ALL's current P/CF looks attractive when compared to its industry's average P/CF of 9.90. Within the past 12 months, ALL's P/CF has been as high as 11.90 and as low as 7.77, with a median of 8.95.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Allstate is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ALL 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 >>
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.
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 to watch right now is Allstate (ALL - Free Report) . ALL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.80, while its industry has an average P/E of 27.84. Over the past 52 weeks, ALL's Forward P/E has been as high as 16.80 and as low as 10.19, with a median of 11.38.
Investors should also note that ALL holds a PEG ratio of 1.30. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ALL's PEG compares to its industry's average PEG of 3.17. Over the past 52 weeks, ALL's PEG has been as high as 2.02 and as low as 1.22, with a median of 1.37.
Finally, investors should note that ALL has a P/CF ratio of 8.47. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ALL's current P/CF looks attractive when compared to its industry's average P/CF of 9.90. Within the past 12 months, ALL's P/CF has been as high as 11.90 and as low as 7.77, with a median of 8.95.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Allstate is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ALL 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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