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Are Investors Undervaluing These Finance Stocks Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
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.
Orix Corp Ads (IX - Free Report) is a stock many investors are watching right now. IX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.64. This compares to its industry's average Forward P/E of 12.06. Over the last 12 months, IX's Forward P/E has been as high as 10.48 and as low as 7.62, with a median of 8.74.
IX is also sporting a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. IX's industry has an average PEG of 0.67 right now. Over the last 12 months, IX's PEG has been as high as 3.61 and as low as 0.35, with a median of 0.64.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IX has a P/S ratio of 1.04. This compares to its industry's average P/S of 2.35.
Finally, investors should note that IX has a P/CF ratio of 4.57. 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. This stock's P/CF looks attractive against its industry's average P/CF of 17.23. Over the past 52 weeks, IX's P/CF has been as high as 5.14 and as low as 4.05, with a median of 4.53.
Investors could also keep in mind Oportun Financial (OPRT - Free Report) , an Financial - Miscellaneous Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, Oportun Financial has a P/B ratio of 7.51 while its industry's price-to-book ratio sits at 4.57. For OPRT, this valuation metric has been as high as 20.71, as low as 1.13, with a median of 7.47 over the past year.
These are only a few of the key metrics included in Orix Corp Ads and Oportun Financial strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, IX and OPRT look like an impressive value stock at the moment.
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Are Investors Undervaluing These Finance Stocks Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
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.
Orix Corp Ads (IX - Free Report) is a stock many investors are watching right now. IX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.64. This compares to its industry's average Forward P/E of 12.06. Over the last 12 months, IX's Forward P/E has been as high as 10.48 and as low as 7.62, with a median of 8.74.
IX is also sporting a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. IX's industry has an average PEG of 0.67 right now. Over the last 12 months, IX's PEG has been as high as 3.61 and as low as 0.35, with a median of 0.64.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IX has a P/S ratio of 1.04. This compares to its industry's average P/S of 2.35.
Finally, investors should note that IX has a P/CF ratio of 4.57. 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. This stock's P/CF looks attractive against its industry's average P/CF of 17.23. Over the past 52 weeks, IX's P/CF has been as high as 5.14 and as low as 4.05, with a median of 4.53.
Investors could also keep in mind Oportun Financial (OPRT - Free Report) , an Financial - Miscellaneous Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, Oportun Financial has a P/B ratio of 7.51 while its industry's price-to-book ratio sits at 4.57. For OPRT, this valuation metric has been as high as 20.71, as low as 1.13, with a median of 7.47 over the past year.
These are only a few of the key metrics included in Orix Corp Ads and Oportun Financial strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, IX and OPRT look like an impressive value stock at the moment.