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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is StoneCo (STNE - Free Report) . STNE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 26.48. This compares to its industry's average Forward P/E of 61.90. Over the last 12 months, STNE's Forward P/E has been as high as 45.05 and as low as 6.70, with a median of 22.25.
Another notable valuation metric for STNE is its P/B ratio of 1.39. 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 1.67. Over the past year, STNE's P/B has been as high as 3.52 and as low as 0.88, with a median of 1.29.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. STNE has a P/S ratio of 2.21. This compares to its industry's average P/S of 3.3.
Another great Internet - Software stock you could consider is Ziff Davis (ZD - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Ziff Davis currently holds a Forward P/E ratio of 12.75, and its PEG ratio is 1.80. In comparison, its industry sports average P/E and PEG ratios of 61.90 and 3.67.
ZD's Forward P/E has been as high as 14.90 and as low as 9.79, with a median of 11.83. During the same time period, its PEG ratio has been as high as 1.81, as low as 1.55, with a median of 1.60.
Furthermore, Ziff Davis holds a P/B ratio of 2.36 and its industry's price-to-book ratio is 1.67. ZD's P/B has been as high as 4.52, as low as 1.76, with a median of 2.24 over the past 12 months.
These are just a handful of the figures considered in StoneCo and Ziff Davis's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that STNE and ZD is an impressive value stock right now.
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Is StoneCo (STNE) Stock Undervalued 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is StoneCo (STNE - Free Report) . STNE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 26.48. This compares to its industry's average Forward P/E of 61.90. Over the last 12 months, STNE's Forward P/E has been as high as 45.05 and as low as 6.70, with a median of 22.25.
Another notable valuation metric for STNE is its P/B ratio of 1.39. 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 1.67. Over the past year, STNE's P/B has been as high as 3.52 and as low as 0.88, with a median of 1.29.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. STNE has a P/S ratio of 2.21. This compares to its industry's average P/S of 3.3.
Another great Internet - Software stock you could consider is Ziff Davis (ZD - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of Ziff Davis currently holds a Forward P/E ratio of 12.75, and its PEG ratio is 1.80. In comparison, its industry sports average P/E and PEG ratios of 61.90 and 3.67.
ZD's Forward P/E has been as high as 14.90 and as low as 9.79, with a median of 11.83. During the same time period, its PEG ratio has been as high as 1.81, as low as 1.55, with a median of 1.60.
Furthermore, Ziff Davis holds a P/B ratio of 2.36 and its industry's price-to-book ratio is 1.67. ZD's P/B has been as high as 4.52, as low as 1.76, with a median of 2.24 over the past 12 months.
These are just a handful of the figures considered in StoneCo and Ziff Davis's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that STNE and ZD is an impressive value stock right now.