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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Xerox (XRX - Free Report) . XRX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.26, which compares to its industry's average of 16.15. Over the last 12 months, XRX's Forward P/E has been as high as 11.93 and as low as 6.69, with a median of 8.93.
Finally, we should also recognize that XRX has a P/CF ratio of 8.25. 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. XRX's P/CF compares to its industry's average P/CF of 19.33. Over the past 52 weeks, XRX's P/CF has been as high as 9.58 and as low as 4.38, with a median of 5.86.
Value investors will likely look at more than just these metrics, but the above data helps show that Xerox is likely undervalued currently. And when considering the strength of its earnings outlook, XRX sticks out at as one of the market's strongest value stocks.
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Is Xerox (XRX) a Great Value Stock 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Xerox (XRX - Free Report) . XRX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.26, which compares to its industry's average of 16.15. Over the last 12 months, XRX's Forward P/E has been as high as 11.93 and as low as 6.69, with a median of 8.93.
Finally, we should also recognize that XRX has a P/CF ratio of 8.25. 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. XRX's P/CF compares to its industry's average P/CF of 19.33. Over the past 52 weeks, XRX's P/CF has been as high as 9.58 and as low as 4.38, with a median of 5.86.
Value investors will likely look at more than just these metrics, but the above data helps show that Xerox is likely undervalued currently. And when considering the strength of its earnings outlook, XRX sticks out at as one of the market's strongest value stocks.