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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.
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 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 company to watch right now is MSC (MSM - Free Report) . MSM is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 21.51, which compares to its industry's average of 30.19. Over the last 12 months, MSM's Forward P/E has been as high as 24.05 and as low as 16.01, with a median of 21.02.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MSM has a P/S ratio of 1.29. This compares to its industry's average P/S of 1.35.
Value investors will likely look at more than just these metrics, but the above data helps show that MSC is likely undervalued currently. And when considering the strength of its earnings outlook, MSM sticks out as one of the market's strongest value stocks.
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Is MSC (MSM) Stock Undervalued 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.
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 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 company to watch right now is MSC (MSM - Free Report) . MSM is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 21.51, which compares to its industry's average of 30.19. Over the last 12 months, MSM's Forward P/E has been as high as 24.05 and as low as 16.01, with a median of 21.02.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MSM has a P/S ratio of 1.29. This compares to its industry's average P/S of 1.35.
Value investors will likely look at more than just these metrics, but the above data helps show that MSC is likely undervalued currently. And when considering the strength of its earnings outlook, MSM sticks out as one of the market's strongest value stocks.