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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is GMS (GMS - Free Report) . GMS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for GMS is its P/B ratio of 2.63. 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 stock's P/B looks solid versus its industry's average P/B of 2.64. Within the past 52 weeks, GMS's P/B has been as high as 2.78 and as low as 1.86, with a median of 2.29.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GMS has a P/S ratio of 0.75. This compares to its industry's average P/S of 0.8.
These are only a few of the key metrics included in GMS'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, GMS looks like an impressive value stock at the moment.
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Are Investors Undervaluing GMS (GMS) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is GMS (GMS - Free Report) . GMS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for GMS is its P/B ratio of 2.63. 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 stock's P/B looks solid versus its industry's average P/B of 2.64. Within the past 52 weeks, GMS's P/B has been as high as 2.78 and as low as 1.86, with a median of 2.29.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GMS has a P/S ratio of 0.75. This compares to its industry's average P/S of 0.8.
These are only a few of the key metrics included in GMS'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, GMS looks like an impressive value stock at the moment.