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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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.
Fly Leasing (FLY - Free Report) is a stock many investors are watching right now. FLY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.56. This compares to its industry's average Forward P/E of 14.60. Over the past 52 weeks, FLY's Forward P/E has been as high as 79.87 and as low as 5.26, with a median of 6.09.
FLY is also sporting a PEG ratio of 0.56. 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. FLY's PEG compares to its industry's average PEG of 1.43. FLY's PEG has been as high as 7.99 and as low as 0.53, with a median of 0.61, all within the past year.
Another notable valuation metric for FLY is its P/B ratio of 0.69. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.63. Over the past year, FLY's P/B has been as high as 0.80 and as low as 0.61, with a median of 0.71.
Finally, our model also underscores that FLY has a P/CF ratio of 2.17. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. FLY's current P/CF looks attractive when compared to its industry's average P/CF of 5.25. FLY's P/CF has been as high as 5.32 and as low as 2.08, with a median of 2.43, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Fly Leasing is likely undervalued currently. And when considering the strength of its earnings outlook, FLY sticks out at as one of the market's strongest value stocks.