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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Commercial Vehicle Group . CVGI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.53 right now. For comparison, its industry sports an average P/E of 11.06. Over the past year, CVGI's Forward P/E has been as high as 34.22 and as low as 5.03, with a median of 7.55.
Another valuation metric that we should highlight is CVGI's P/B ratio of 2.70. 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. CVGI's current P/B looks attractive when compared to its industry's average P/B of 2.75. Over the past year, CVGI's P/B has been as high as 5.51 and as low as 2.24, with a median of 3.10.
Finally, investors should note that CVGI has a P/CF ratio of 6.74. 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. CVGI's P/CF compares to its industry's average P/CF of 7.57. Within the past 12 months, CVGI's P/CF has been as high as 27.22 and as low as 5.58, with a median of 10.65.
These are just a handful of the figures considered in Commercial Vehicle Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CVGI is an impressive value stock right now.