The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Air France (AFLYY - Free Report) . AFLYY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.33. This compares to its industry's average Forward P/E of 10.14. AFLYY's Forward P/E has been as high as 7.75 and as low as 3.09, with a median of 4.85, all within the past year.
We also note that AFLYY holds a PEG ratio of 0.45. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AFLYY's PEG compares to its industry's average PEG of 0.64. AFLYY's PEG has been as high as 0.59 and as low as 0.16, with a median of 0.30, all within the past year.
Another notable valuation metric for AFLYY is its P/B ratio of 1.33. 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 2.89. Within the past 52 weeks, AFLYY's P/B has been as high as 2.21 and as low as 1.12, with a median of 1.50.
Finally, we should also recognize that AFLYY has a P/CF ratio of 1.95. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AFLYY's P/CF compares to its industry's average P/CF of 6.13. Within the past 12 months, AFLYY's P/CF has been as high as 3.79 and as low as 1.17, with a median of 1.82.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Air France is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AFLYY feels like a great value stock at the moment.