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Is Orix (IX) a Great Value Stock Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Orix (IX - Free Report) is a stock many investors are watching right now. IX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.58, while its industry has an average P/E of 10.38. IX's Forward P/E has been as high as 9.14 and as low as 6.58, with a median of 7.81, all within the past year.

IX is also sporting 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. IX's PEG compares to its industry's average PEG of 1.08. Over the last 12 months, IX's PEG has been as high as 1.11 and as low as 0.85, with a median of 0.95.

Investors should also recognize that IX has a P/B ratio of 0.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.98. Within the past 52 weeks, IX's P/B has been as high as 1.03 and as low as 0.76, with a median of 0.88.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Orix is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IX feels like a great value stock at the moment.


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