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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Multi-Color (LABL - Free Report) . LABL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.53, which compares to its industry's average of 20.48. Over the past year, LABL's Forward P/E has been as high as 20.94 and as low as 13.65, with a median of 16.97.
Investors should also recognize that LABL has a P/B ratio of 1.76. 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 4.70. Over the past year, LABL's P/B has been as high as 3.37 and as low as 1.66, with a median of 2.11.
Finally, investors should note that LABL has a P/CF ratio of 9.10. 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. LABL's P/CF compares to its industry's average P/CF of 10.27. Within the past 12 months, LABL's P/CF has been as high as 13.53 and as low as 8.59, with a median of 11.30.
These are just a handful of the figures considered in Multi-Color's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that LABL is an impressive value stock right now.