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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is Ericsson (ERIC - Free Report) . ERIC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 16.20, which compares to its industry's average of 20.48. Over the past year, ERIC's Forward P/E has been as high as 20.03 and as low as 13.74, with a median of 16.10.
Investors should also note that ERIC holds a PEG ratio of 0.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ERIC's PEG compares to its industry's average PEG of 1.09. Within the past year, ERIC's PEG has been as high as 0.90 and as low as 0.51, with a median of 0.60.
Investors should also recognize that ERIC has a P/B ratio of 4.74. 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. This stock's P/B looks attractive against its industry's average P/B of 6.34. Over the past year, ERIC's P/B has been as high as 4.95 and as low as 3.05, with a median of 4.30.
Finally, our model also underscores that ERIC has a P/CF ratio of 15.26. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ERIC's P/CF compares to its industry's average P/CF of 39.34. ERIC's P/CF has been as high as 33.38 and as low as 13.45, with a median of 21.99, all within the past year.
These are only a few of the key metrics included in Ericsson'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, ERIC looks like an impressive value stock at the moment.
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Should Value Investors Buy Ericsson (ERIC) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is Ericsson (ERIC - Free Report) . ERIC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 16.20, which compares to its industry's average of 20.48. Over the past year, ERIC's Forward P/E has been as high as 20.03 and as low as 13.74, with a median of 16.10.
Investors should also note that ERIC holds a PEG ratio of 0.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ERIC's PEG compares to its industry's average PEG of 1.09. Within the past year, ERIC's PEG has been as high as 0.90 and as low as 0.51, with a median of 0.60.
Investors should also recognize that ERIC has a P/B ratio of 4.74. 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. This stock's P/B looks attractive against its industry's average P/B of 6.34. Over the past year, ERIC's P/B has been as high as 4.95 and as low as 3.05, with a median of 4.30.
Finally, our model also underscores that ERIC has a P/CF ratio of 15.26. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ERIC's P/CF compares to its industry's average P/CF of 39.34. ERIC's P/CF has been as high as 33.38 and as low as 13.45, with a median of 21.99, all within the past year.
These are only a few of the key metrics included in Ericsson'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, ERIC looks like an impressive value stock at the moment.