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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Juniper Networks (JNPR - Free Report) . JNPR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 15.04. This compares to its industry's average Forward P/E of 24.18. Over the last 12 months, JNPR's Forward P/E has been as high as 15.11 and as low as 10.77, with a median of 13.62.
Investors should also note that JNPR holds a PEG ratio of 2.63. 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. JNPR's industry has an average PEG of 2.88 right now. Over the last 12 months, JNPR's PEG has been as high as 2.64 and as low as 1.08, with a median of 2.17.
Another notable valuation metric for JNPR is its P/B ratio of 2.35. 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 5.33. Over the past year, JNPR's P/B has been as high as 2.35 and as low as 1.81, with a median of 2.11.
These are just a handful of the figures considered in Juniper Networks'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 JNPR is an impressive value stock right now.