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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is iQIYI (IQ - Free Report) . IQ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.84. This compares to its industry's average Forward P/E of 26.49. Over the past 52 weeks, IQ's Forward P/E has been as high as 1,490.42 and as low as -1,289.67, with a median of 19.89.
Finally, we should also recognize that IQ has a P/CF ratio of 3.12. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. IQ's current P/CF looks attractive when compared to its industry's average P/CF of 8.86. Within the past 12 months, IQ's P/CF has been as high as 5.70 and as low as 0.79, with a median of 3.07.
These are only a few of the key metrics included in iQIYI's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IQ looks like an impressive value stock at the moment.
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Are Investors Undervaluing iQIYI (IQ) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is iQIYI (IQ - Free Report) . IQ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.84. This compares to its industry's average Forward P/E of 26.49. Over the past 52 weeks, IQ's Forward P/E has been as high as 1,490.42 and as low as -1,289.67, with a median of 19.89.
Finally, we should also recognize that IQ has a P/CF ratio of 3.12. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. IQ's current P/CF looks attractive when compared to its industry's average P/CF of 8.86. Within the past 12 months, IQ's P/CF has been as high as 5.70 and as low as 0.79, with a median of 3.07.
These are only a few of the key metrics included in iQIYI's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IQ looks like an impressive value stock at the moment.