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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is WPP (WPP - Free Report) . WPP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.62. This compares to its industry's average Forward P/E of 10.84. Over the past 52 weeks, WPP's Forward P/E has been as high as 15.14 and as low as 7.19, with a median of 8.93.
Investors will also notice that WPP has a PEG ratio of 0.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WPP's PEG compares to its industry's average PEG of 2.07. WPP's PEG has been as high as 1.46 and as low as 0.70, with a median of 0.92, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that WPP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WPP feels like a great value stock at the moment.
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Are Investors Undervaluing WPP (WPP) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is WPP (WPP - Free Report) . WPP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.62. This compares to its industry's average Forward P/E of 10.84. Over the past 52 weeks, WPP's Forward P/E has been as high as 15.14 and as low as 7.19, with a median of 8.93.
Investors will also notice that WPP has a PEG ratio of 0.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WPP's PEG compares to its industry's average PEG of 2.07. WPP's PEG has been as high as 1.46 and as low as 0.70, with a median of 0.92, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that WPP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WPP feels like a great value stock at the moment.