Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
PEUGEOT SA is a stock many investors are watching right now. PUGOY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 11.19 right now. For comparison, its industry sports an average P/E of 14.39. Over the past year, PUGOY's Forward P/E has been as high as 11.74 and as low as 2.14, with a median of 5.14.
Another valuation metric that we should highlight is PUGOY's P/B ratio of 0.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 0.84. PUGOY's P/B has been as high as 1.14 and as low as 0.40, with a median of 0.79, over the past year.
These are only a few of the key metrics included in PEUGEOT SA's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PUGOY looks like an impressive value stock at the moment.