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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Terex (TEX - Free Report) . TEX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.93. This compares to its industry's average Forward P/E of 14.02. TEX's Forward P/E has been as high as 12.24 and as low as 6.52, with a median of 9.09, all within the past year.
We also note that TEX holds a PEG ratio of 0.56. 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. TEX's PEG compares to its industry's average PEG of 1.11. Over the past 52 weeks, TEX's PEG has been as high as 0.65 and as low as 0.38, with a median of 0.49.
Investors should also recognize that TEX has a P/B ratio of 3.20. 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 company's current P/B looks solid when compared to its industry's average P/B of 6. Over the past 12 months, TEX's P/B has been as high as 3.45 and as low as 1.90, with a median of 2.66.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. TEX has a P/S ratio of 0.86. This compares to its industry's average P/S of 0.95.
Finally, investors should note that TEX has a P/CF ratio of 10.30. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.78. Over the past year, TEX's P/CF has been as high as 11.92 and as low as 6.48, with a median of 9.14.
These are only a few of the key metrics included in Terex'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, TEX looks like an impressive value stock at the moment.
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Should Value Investors Buy Terex (TEX) Stock?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Terex (TEX - Free Report) . TEX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.93. This compares to its industry's average Forward P/E of 14.02. TEX's Forward P/E has been as high as 12.24 and as low as 6.52, with a median of 9.09, all within the past year.
We also note that TEX holds a PEG ratio of 0.56. 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. TEX's PEG compares to its industry's average PEG of 1.11. Over the past 52 weeks, TEX's PEG has been as high as 0.65 and as low as 0.38, with a median of 0.49.
Investors should also recognize that TEX has a P/B ratio of 3.20. 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 company's current P/B looks solid when compared to its industry's average P/B of 6. Over the past 12 months, TEX's P/B has been as high as 3.45 and as low as 1.90, with a median of 2.66.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. TEX has a P/S ratio of 0.86. This compares to its industry's average P/S of 0.95.
Finally, investors should note that TEX has a P/CF ratio of 10.30. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.78. Over the past year, TEX's P/CF has been as high as 11.92 and as low as 6.48, with a median of 9.14.
These are only a few of the key metrics included in Terex'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, TEX looks like an impressive value stock at the moment.