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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is NCI Building Systems (NCS - Free Report) . NCS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.45, while its industry has an average P/E of 11.09. Over the last 12 months, NCS's Forward P/E has been as high as 19.71 and as low as 8.23, with a median of 13.23.
Investors will also notice that NCS has a PEG ratio of 0.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NCS's PEG compares to its industry's average PEG of 0.90. Over the past 52 weeks, NCS's PEG has been as high as 1.97 and as low as 0.82, with a median of 1.32.
Finally, investors should note that NCS has a P/CF ratio of 9.94. 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. This stock's P/CF looks attractive against its industry's average P/CF of 15.31. Within the past 12 months, NCS's P/CF has been as high as 17.99 and as low as 9.20, with a median of 11.19.
These figures are just a handful of the metrics value investors tend to look at, but they help show that NCI Building Systems is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NCS feels like a great value stock at the moment.