Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Lazard Ltd (LAZ - Free Report) . LAZ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.88. This compares to its industry's average Forward P/E of 12.12. LAZ's Forward P/E has been as high as 15.55 and as low as 9.88, with a median of 12.64, all within the past year.
Investors should also note that LAZ holds a PEG ratio of 0.94. 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. LAZ's PEG compares to its industry's average PEG of 1.20. Over the last 12 months, LAZ's PEG has been as high as 1.90 and as low as 0.94, with a median of 1.36.
Finally, investors should note that LAZ has a P/CF ratio of 8.21. 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. LAZ's P/CF compares to its industry's average P/CF of 15.12. Over the past 52 weeks, LAZ's P/CF has been as high as 10.89 and as low as 6.03, with a median of 9.31.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Lazard Ltd is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LAZ feels like a great value stock at the moment.