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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 Itochu (ITOCY - Free Report) . ITOCY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.87, while its industry has an average P/E of 14.04. Over the past 52 weeks, ITOCY's Forward P/E has been as high as 9.77 and as low as 6.76, with a median of 8.10.
Investors should also note that ITOCY holds a PEG ratio of 0.51. 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. ITOCY's industry currently sports an average PEG of 0.68. Over the last 12 months, ITOCY's PEG has been as high as 2.63 and as low as 0.34, with a median of 0.53.
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. ITOCY has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.73.
Finally, our model also underscores that ITOCY has a P/CF ratio of 4.75. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.62. Within the past 12 months, ITOCY's P/CF has been as high as 6.34 and as low as 4.31, with a median of 4.86.
If you're looking for another solid Retail - Miscellaneous value stock, take a look at The ODP Corporation (ODP - Free Report) . ODP is a # 2 (Buy) stock with a Value score of A.
Shares of The ODP Corporation currently holds a Forward P/E ratio of 10.13, and its PEG ratio is 1.11. In comparison, its industry sports average P/E and PEG ratios of 14.04 and 0.68.
The ODP Corporation sports a P/B ratio of 1.55 as well; this compares to its industry's price-to-book ratio of 9.98. In the past 52 weeks, ODP's P/B has been as high as 1.70, as low as 1, with a median of 1.30.
These are only a few of the key metrics included in Itochu and The ODP Corporation strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ITOCY and ODP look like an impressive value stock at the moment.
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Is Itochu (ITOCY) Stock Undervalued Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 Itochu (ITOCY - Free Report) . ITOCY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.87, while its industry has an average P/E of 14.04. Over the past 52 weeks, ITOCY's Forward P/E has been as high as 9.77 and as low as 6.76, with a median of 8.10.
Investors should also note that ITOCY holds a PEG ratio of 0.51. 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. ITOCY's industry currently sports an average PEG of 0.68. Over the last 12 months, ITOCY's PEG has been as high as 2.63 and as low as 0.34, with a median of 0.53.
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. ITOCY has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.73.
Finally, our model also underscores that ITOCY has a P/CF ratio of 4.75. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.62. Within the past 12 months, ITOCY's P/CF has been as high as 6.34 and as low as 4.31, with a median of 4.86.
If you're looking for another solid Retail - Miscellaneous value stock, take a look at The ODP Corporation (ODP - Free Report) . ODP is a # 2 (Buy) stock with a Value score of A.
Shares of The ODP Corporation currently holds a Forward P/E ratio of 10.13, and its PEG ratio is 1.11. In comparison, its industry sports average P/E and PEG ratios of 14.04 and 0.68.
The ODP Corporation sports a P/B ratio of 1.55 as well; this compares to its industry's price-to-book ratio of 9.98. In the past 52 weeks, ODP's P/B has been as high as 1.70, as low as 1, with a median of 1.30.
These are only a few of the key metrics included in Itochu and The ODP Corporation strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ITOCY and ODP look like an impressive value stock at the moment.