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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Tokio Marine (TKOMY - Free Report) . TKOMY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.22. This compares to its industry's average Forward P/E of 27.41. Over the past year, TKOMY's Forward P/E has been as high as 14.31 and as low as 11.01, with a median of 12.28.
Investors should also note that TKOMY holds a PEG ratio of 1.52. 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. TKOMY's PEG compares to its industry's average PEG of 3.12. Over the past 52 weeks, TKOMY's PEG has been as high as 2.82 and as low as 1.51, with a median of 2.64.
Another valuation metric that we should highlight is TKOMY's P/B ratio of 1. The P/B is a method of comparing a stock's market value to 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 1.47. Over the past year, TKOMY's P/B has been as high as 1.09 and as low as 0.88, with a median of 1.01.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Tokio Marine is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TKOMY feels like a great value stock at the moment.