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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Cars.com (CARS - Free Report) is a stock many investors are watching right now. CARS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
CARS is also sporting a PEG ratio of 2.09. 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. CARS's PEG compares to its industry's average PEG of 2.25. CARS's PEG has been as high as 2.09 and as low as 1.44, with a median of 1.70, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CARS has a P/S ratio of 0.92. This compares to its industry's average P/S of 2.31.
Value investors will likely look at more than just these metrics, but the above data helps show that Cars.com is likely undervalued currently. And when considering the strength of its earnings outlook, CARS sticks out at as one of the market's strongest value stocks.
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Is Cars.com (CARS) a Great Value Stock Right Now?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Cars.com (CARS - Free Report) is a stock many investors are watching right now. CARS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
CARS is also sporting a PEG ratio of 2.09. 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. CARS's PEG compares to its industry's average PEG of 2.25. CARS's PEG has been as high as 2.09 and as low as 1.44, with a median of 1.70, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CARS has a P/S ratio of 0.92. This compares to its industry's average P/S of 2.31.
Value investors will likely look at more than just these metrics, but the above data helps show that Cars.com is likely undervalued currently. And when considering the strength of its earnings outlook, CARS sticks out at as one of the market's strongest value stocks.