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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.
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 stock to keep an eye on is JD.com (JD - Free Report) . JD is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.77, which compares to its industry's average of 26.26. Over the past 52 weeks, JD's Forward P/E has been as high as 14.99 and as low as 6.89, with a median of 10.67.
Finally, our model also underscores that JD has a P/CF ratio of 9.77. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 18.36. Within the past 12 months, JD's P/CF has been as high as 28.11 and as low as 7.66, with a median of 12.18.
These figures are just a handful of the metrics value investors tend to look at, but they help show that JD.com is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JD feels like a great value stock at the moment.
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Is JD.com (JD) Stock Undervalued 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.
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 stock to keep an eye on is JD.com (JD - Free Report) . JD is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.77, which compares to its industry's average of 26.26. Over the past 52 weeks, JD's Forward P/E has been as high as 14.99 and as low as 6.89, with a median of 10.67.
Finally, our model also underscores that JD has a P/CF ratio of 9.77. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 18.36. Within the past 12 months, JD's P/CF has been as high as 28.11 and as low as 7.66, with a median of 12.18.
These figures are just a handful of the metrics value investors tend to look at, but they help show that JD.com is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JD feels like a great value stock at the moment.