We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is JD.com (JD - Free Report) . JD is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.48 right now. For comparison, its industry sports an average P/E of 20.51. JD's Forward P/E has been as high as 11.39 and as low as 6.57, with a median of 8.65, all within the past year.
Another notable valuation metric for JD is its P/B ratio of 1.18. 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. JD's current P/B looks attractive when compared to its industry's average P/B of 3.22. Over the past year, JD's P/B has been as high as 1.76 and as low as 1.02, with a median of 1.30.
Finally, investors will want to recognize that JD has a P/CF ratio of 7.89. 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 8.85. Over the past 52 weeks, JD's P/CF has been as high as 11.82 and as low as 6.65, with a median of 7.92.
If you're looking for another solid Internet - Commerce value stock, take a look at LY CORPORATION (YAHOY - Free Report) . YAHOY is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Additionally, LY CORPORATION has a P/B ratio of 0.97 while its industry's price-to-book ratio sits at 3.22. For YAHOY, this valuation metric has been as high as 1.31, as low as 0.83, with a median of 0.99 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that JD.com and LY CORPORATION are likely undervalued currently. And when considering the strength of its earnings outlook, JD and YAHOY sticks out as one of the market's strongest value stocks.
View the Zacks #1 Rank List
Image: Bigstock
Are Investors Undervaluing JD.com (JD) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is JD.com (JD - Free Report) . JD is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.48 right now. For comparison, its industry sports an average P/E of 20.51. JD's Forward P/E has been as high as 11.39 and as low as 6.57, with a median of 8.65, all within the past year.
Another notable valuation metric for JD is its P/B ratio of 1.18. 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. JD's current P/B looks attractive when compared to its industry's average P/B of 3.22. Over the past year, JD's P/B has been as high as 1.76 and as low as 1.02, with a median of 1.30.
Finally, investors will want to recognize that JD has a P/CF ratio of 7.89. 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 8.85. Over the past 52 weeks, JD's P/CF has been as high as 11.82 and as low as 6.65, with a median of 7.92.
If you're looking for another solid Internet - Commerce value stock, take a look at LY CORPORATION (YAHOY - Free Report) . YAHOY is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Additionally, LY CORPORATION has a P/B ratio of 0.97 while its industry's price-to-book ratio sits at 3.22. For YAHOY, this valuation metric has been as high as 1.31, as low as 0.83, with a median of 0.99 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that JD.com and LY CORPORATION are likely undervalued currently. And when considering the strength of its earnings outlook, JD and YAHOY sticks out as one of the market's strongest value stocks.