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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Aaron's (AAN - Free Report) . AAN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Investors will also notice that AAN has a PEG ratio of 0.80. 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. AAN's industry has an average PEG of 0.81 right now. AAN's PEG has been as high as 0.80 and as low as 0.75, with a median of 0.77, all within the past year.
Investors should also recognize that AAN has a P/B ratio of 1.92. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. AAN's current P/B looks attractive when compared to its industry's average P/B of 3.23. AAN's P/B has been as high as 2.20 and as low as 1.52, with a median of 1.82, over the past year.
Finally, we should also recognize that AAN has a P/CF ratio of 1.68. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.41. Over the past 52 weeks, AAN's P/CF has been as high as 1.99 and as low as 1.34, with a median of 1.66.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Aaron's is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AAN 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, 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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Aaron's (AAN - Free Report) . AAN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Investors will also notice that AAN has a PEG ratio of 0.80. 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. AAN's industry has an average PEG of 0.81 right now. AAN's PEG has been as high as 0.80 and as low as 0.75, with a median of 0.77, all within the past year.
Investors should also recognize that AAN has a P/B ratio of 1.92. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. AAN's current P/B looks attractive when compared to its industry's average P/B of 3.23. AAN's P/B has been as high as 2.20 and as low as 1.52, with a median of 1.82, over the past year.
Finally, we should also recognize that AAN has a P/CF ratio of 1.68. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.41. Over the past 52 weeks, AAN's P/CF has been as high as 1.99 and as low as 1.34, with a median of 1.66.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Aaron's is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AAN 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 >>
Get the latest research report on AAN - FREE