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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Screen Holdings Co., Ltd (DINRF - Free Report) is a stock many investors are watching right now. DINRF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.54. This compares to its industry's average Forward P/E of 20.92. Over the past 52 weeks, DINRF's Forward P/E has been as high as 24.66 and as low as 8.66, with a median of 10.64.
We also note that DINRF holds a PEG ratio of 1.09. 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. DINRF's PEG compares to its industry's average PEG of 2.53. Over the last 12 months, DINRF's PEG has been as high as 2.47 and as low as 0.87, with a median of 1.06.
Value investors will likely look at more than just these metrics, but the above data helps show that Screen Holdings Co., Ltd is likely undervalued currently. And when considering the strength of its earnings outlook, DINRF sticks out at as one of the market's strongest value stocks.