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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Terex (TEX - Free Report) . TEX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.56, while its industry has an average P/E of 13.31. Over the past 52 weeks, TEX's Forward P/E has been as high as 16.48 and as low as 6.36, with a median of 9.22.
We also note that TEX holds a PEG ratio of 0.44. 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. TEX's industry currently sports an average PEG of 1.02. Over the last 12 months, TEX's PEG has been as high as 0.57 and as low as 0.36, with a median of 0.46.
Another notable valuation metric for TEX is its P/B ratio of 2.19. 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. TEX's current P/B looks attractive when compared to its industry's average P/B of 5.02. Over the past year, TEX's P/B has been as high as 3.37 and as low as 1.73, with a median of 2.43.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TEX has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.75.
Finally, investors should note that TEX has a P/CF ratio of 8.33. 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 stock's P/CF looks attractive against its industry's average P/CF of 8.90. Over the past 52 weeks, TEX's P/CF has been as high as 17.24 and as low as 6.74, with a median of 10.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Terex is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TEX feels like a great value stock at the moment.
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Is Terex (TEX) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Terex (TEX - Free Report) . TEX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.56, while its industry has an average P/E of 13.31. Over the past 52 weeks, TEX's Forward P/E has been as high as 16.48 and as low as 6.36, with a median of 9.22.
We also note that TEX holds a PEG ratio of 0.44. 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. TEX's industry currently sports an average PEG of 1.02. Over the last 12 months, TEX's PEG has been as high as 0.57 and as low as 0.36, with a median of 0.46.
Another notable valuation metric for TEX is its P/B ratio of 2.19. 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. TEX's current P/B looks attractive when compared to its industry's average P/B of 5.02. Over the past year, TEX's P/B has been as high as 3.37 and as low as 1.73, with a median of 2.43.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TEX has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.75.
Finally, investors should note that TEX has a P/CF ratio of 8.33. 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 stock's P/CF looks attractive against its industry's average P/CF of 8.90. Over the past 52 weeks, TEX's P/CF has been as high as 17.24 and as low as 6.74, with a median of 10.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Terex is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TEX feels like a great value stock at the moment.