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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Terex (TEX - Free Report) . TEX is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.07. This compares to its industry's average Forward P/E of 13.04. Over the past 52 weeks, TEX's Forward P/E has been as high as 12.24 and as low as 6.52, with a median of 9.22.
Investors will also notice that TEX has a PEG ratio of 0.44. 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 industry has an average PEG of 1.03 right now. Over the last 12 months, TEX's PEG has been as high as 0.65 and as low as 0.38, with a median of 0.50.
Another notable valuation metric for TEX is its P/B ratio of 2.66. 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. This company's current P/B looks solid when compared to its industry's average P/B of 6.17. TEX's P/B has been as high as 3.45 and as low as 1.90, with a median of 2.71, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.75. This compares to its industry's average P/S of 0.93.
Finally, our model also underscores that TEX has a P/CF ratio of 6.76. 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 9.96. Within the past 12 months, TEX's P/CF has been as high as 10.03 and as low as 6.03, with a median of 7.74.
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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Is Terex (TEX) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Terex (TEX - Free Report) . TEX is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.07. This compares to its industry's average Forward P/E of 13.04. Over the past 52 weeks, TEX's Forward P/E has been as high as 12.24 and as low as 6.52, with a median of 9.22.
Investors will also notice that TEX has a PEG ratio of 0.44. 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 industry has an average PEG of 1.03 right now. Over the last 12 months, TEX's PEG has been as high as 0.65 and as low as 0.38, with a median of 0.50.
Another notable valuation metric for TEX is its P/B ratio of 2.66. 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. This company's current P/B looks solid when compared to its industry's average P/B of 6.17. TEX's P/B has been as high as 3.45 and as low as 1.90, with a median of 2.71, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.75. This compares to its industry's average P/S of 0.93.
Finally, our model also underscores that TEX has a P/CF ratio of 6.76. 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 9.96. Within the past 12 months, TEX's P/CF has been as high as 10.03 and as low as 6.03, with a median of 7.74.
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.