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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Univar Solutions . UNVR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.86 right now. For comparison, its industry sports an average P/E of 9.88. Over the past year, UNVR's Forward P/E has been as high as 15.66 and as low as 7.54, with a median of 12.34.
Investors will also notice that UNVR has a PEG ratio of 0.54. 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. UNVR's industry currently sports an average PEG of 0.66. Over the past 52 weeks, UNVR's PEG has been as high as 1.21 and as low as 0.49, with a median of 0.95.
Investors should also recognize that UNVR has a P/B ratio of 1.61. 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. UNVR's current P/B looks attractive when compared to its industry's average P/B of 2.08. Within the past 52 weeks, UNVR's P/B has been as high as 2.52 and as low as 1.51, with a median of 2.04.
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. UNVR has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.59.
Finally, our model also underscores that UNVR has a P/CF ratio of 5.42. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. UNVR's current P/CF looks attractive when compared to its industry's average P/CF of 6.41. Over the past 52 weeks, UNVR's P/CF has been as high as 10.31 and as low as 5.08, with a median of 7.19.
Value investors will likely look at more than just these metrics, but the above data helps show that Univar Solutions is likely undervalued currently. And when considering the strength of its earnings outlook, UNVR sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Univar Solutions (UNVR) 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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Univar Solutions . UNVR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.86 right now. For comparison, its industry sports an average P/E of 9.88. Over the past year, UNVR's Forward P/E has been as high as 15.66 and as low as 7.54, with a median of 12.34.
Investors will also notice that UNVR has a PEG ratio of 0.54. 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. UNVR's industry currently sports an average PEG of 0.66. Over the past 52 weeks, UNVR's PEG has been as high as 1.21 and as low as 0.49, with a median of 0.95.
Investors should also recognize that UNVR has a P/B ratio of 1.61. 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. UNVR's current P/B looks attractive when compared to its industry's average P/B of 2.08. Within the past 52 weeks, UNVR's P/B has been as high as 2.52 and as low as 1.51, with a median of 2.04.
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. UNVR has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.59.
Finally, our model also underscores that UNVR has a P/CF ratio of 5.42. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. UNVR's current P/CF looks attractive when compared to its industry's average P/CF of 6.41. Over the past 52 weeks, UNVR's P/CF has been as high as 10.31 and as low as 5.08, with a median of 7.19.
Value investors will likely look at more than just these metrics, but the above data helps show that Univar Solutions is likely undervalued currently. And when considering the strength of its earnings outlook, UNVR sticks out at as one of the market's strongest value stocks.