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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.
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 Afya (AFYA - Free Report) . AFYA is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.67, which compares to its industry's average of 12.24. Over the last 12 months, AFYA's Forward P/E has been as high as 12.39 and as low as 7.58, with a median of 9.02.
We also note that AFYA holds a PEG ratio of 0.42. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AFYA's industry currently sports an average PEG of 0.84. Over the last 12 months, AFYA's PEG has been as high as 0.60 and as low as 0.25, with a median of 0.35.
Investors should also recognize that AFYA has a P/B ratio of 1.81. 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 3.81. AFYA's P/B has been as high as 2.42 and as low as 1.57, with a median of 2.03, over the past year.
If you're looking for another solid Schools value stock, take a look at Strategic Education (STRA - Free Report) . STRA is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Shares of Strategic Education are currently trading at a forward earnings multiple of 13.07 and a PEG ratio of 0.87 compared to its industry's P/E and PEG ratios of 12.24 and 0.84, respectively.
STRA's price-to-earnings ratio has been as high as 19.49 and as low as 11.79, with a median of 14.61, while its PEG ratio has been as high as 1.30 and as low as 0.79, with a median of 0.97, all within the past year.
Strategic Education sports a P/B ratio of 1.18 as well; this compares to its industry's price-to-book ratio of 3.81. In the past 52 weeks, STRA's P/B has been as high as 1.53, as low as 1.06, with a median of 1.26.
Value investors will likely look at more than just these metrics, but the above data helps show that Afya and Strategic Education are likely undervalued currently. And when considering the strength of its earnings outlook, AFYA and STRA sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Afya (AFYA) 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.
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 Afya (AFYA - Free Report) . AFYA is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.67, which compares to its industry's average of 12.24. Over the last 12 months, AFYA's Forward P/E has been as high as 12.39 and as low as 7.58, with a median of 9.02.
We also note that AFYA holds a PEG ratio of 0.42. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AFYA's industry currently sports an average PEG of 0.84. Over the last 12 months, AFYA's PEG has been as high as 0.60 and as low as 0.25, with a median of 0.35.
Investors should also recognize that AFYA has a P/B ratio of 1.81. 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 3.81. AFYA's P/B has been as high as 2.42 and as low as 1.57, with a median of 2.03, over the past year.
If you're looking for another solid Schools value stock, take a look at Strategic Education (STRA - Free Report) . STRA is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Shares of Strategic Education are currently trading at a forward earnings multiple of 13.07 and a PEG ratio of 0.87 compared to its industry's P/E and PEG ratios of 12.24 and 0.84, respectively.
STRA's price-to-earnings ratio has been as high as 19.49 and as low as 11.79, with a median of 14.61, while its PEG ratio has been as high as 1.30 and as low as 0.79, with a median of 0.97, all within the past year.
Strategic Education sports a P/B ratio of 1.18 as well; this compares to its industry's price-to-book ratio of 3.81. In the past 52 weeks, STRA's P/B has been as high as 1.53, as low as 1.06, with a median of 1.26.
Value investors will likely look at more than just these metrics, but the above data helps show that Afya and Strategic Education are likely undervalued currently. And when considering the strength of its earnings outlook, AFYA and STRA sticks out as one of the market's strongest value stocks.