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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Ford (F - Free Report) . F is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.15 right now. For comparison, its industry sports an average P/E of 8.54. F's Forward P/E has been as high as 8.44 and as low as 5.67, with a median of 7.11, all within the past year.
Investors should also note that F holds a PEG ratio of 0.98. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. F's PEG compares to its industry's average PEG of 0.99. Within the past year, F's PEG has been as high as 1.43 and as low as 0.69, with a median of 0.93.
Another notable valuation metric for F is its P/B ratio of 1.07. 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. F's current P/B looks attractive when compared to its industry's average P/B of 2.05. Over the past year, F's P/B has been as high as 1.32 and as low as 0.83, with a median of 1.02.
Finally, we should also recognize that F has a P/CF ratio of 3.45. 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. F's current P/CF looks attractive when compared to its industry's average P/CF of 5.47. F's P/CF has been as high as 3.67 and as low as 2.07, with a median of 2.78, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Ford is likely undervalued currently. And when considering the strength of its earnings outlook, F 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Ford (F - Free Report) . F is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.15 right now. For comparison, its industry sports an average P/E of 8.54. F's Forward P/E has been as high as 8.44 and as low as 5.67, with a median of 7.11, all within the past year.
Investors should also note that F holds a PEG ratio of 0.98. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. F's PEG compares to its industry's average PEG of 0.99. Within the past year, F's PEG has been as high as 1.43 and as low as 0.69, with a median of 0.93.
Another notable valuation metric for F is its P/B ratio of 1.07. 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. F's current P/B looks attractive when compared to its industry's average P/B of 2.05. Over the past year, F's P/B has been as high as 1.32 and as low as 0.83, with a median of 1.02.
Finally, we should also recognize that F has a P/CF ratio of 3.45. 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. F's current P/CF looks attractive when compared to its industry's average P/CF of 5.47. F's P/CF has been as high as 3.67 and as low as 2.07, with a median of 2.78, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Ford is likely undervalued currently. And when considering the strength of its earnings outlook, F 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 >>
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