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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Wesco International (WCC - Free Report) . WCC 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 10.13, while its industry has an average P/E of 11.46. Over the last 12 months, WCC's Forward P/E has been as high as 11.41 and as low as 7.63, with a median of 9.42.
WCC is also sporting a PEG ratio of 1.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WCC's PEG compares to its industry's average PEG of 1.64. WCC's PEG has been as high as 1.14 and as low as 0.76, with a median of 0.94, all within the past year.
Another valuation metric that we should highlight is WCC's P/B ratio of 1.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. WCC's current P/B looks attractive when compared to its industry's average P/B of 1.31. Over the past year, WCC's P/B has been as high as 1.19 and as low as 0.84, with a median of 1.03.
Finally, our model also underscores that WCC has a P/CF ratio of 7.93. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. WCC's P/CF compares to its industry's average P/CF of 15.44. Over the past 52 weeks, WCC's P/CF has been as high as 8.96 and as low as 6.28, with a median of 7.78.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Wesco International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WCC 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 >>
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Wesco International (WCC - Free Report) . WCC 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 10.13, while its industry has an average P/E of 11.46. Over the last 12 months, WCC's Forward P/E has been as high as 11.41 and as low as 7.63, with a median of 9.42.
WCC is also sporting a PEG ratio of 1.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WCC's PEG compares to its industry's average PEG of 1.64. WCC's PEG has been as high as 1.14 and as low as 0.76, with a median of 0.94, all within the past year.
Another valuation metric that we should highlight is WCC's P/B ratio of 1.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. WCC's current P/B looks attractive when compared to its industry's average P/B of 1.31. Over the past year, WCC's P/B has been as high as 1.19 and as low as 0.84, with a median of 1.03.
Finally, our model also underscores that WCC has a P/CF ratio of 7.93. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. WCC's P/CF compares to its industry's average P/CF of 15.44. Over the past 52 weeks, WCC's P/CF has been as high as 8.96 and as low as 6.28, with a median of 7.78.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Wesco International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WCC 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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