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 Atkore International Group Inc. (ATKR - Free Report) . ATKR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.07, which compares to its industry's average of 9.25. Over the past year, ATKR's Forward P/E has been as high as 14.50 and as low as 8.01, with a median of 9.93.
ATKR is also sporting a PEG ratio of 0.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ATKR's industry currently sports an average PEG of 0.92. Over the past 52 weeks, ATKR's PEG has been as high as 1.45 and as low as 0.80, with a median of 0.99.
Finally, we should also recognize that ATKR has a P/CF ratio of 6.57. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.25. ATKR's P/CF has been as high as 10.42 and as low as 5.34, with a median of 8.87, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Atkore International Group Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, ATKR sticks out at as one of the market's strongest value stocks.