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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Vishay Intertechnology (VSH - Free Report) . VSH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.97, while its industry has an average P/E of 17.36. VSH's Forward P/E has been as high as 15.59 and as low as 8.97, with a median of 12.78, all within the past year.
Investors will also notice that VSH has a PEG ratio of 0.98. 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. VSH's industry currently sports an average PEG of 1.90. Within the past year, VSH's PEG has been as high as 2.67 and as low as 0.55, with a median of 1.20.
Finally, our model also underscores that VSH has a P/CF ratio of 13.91. 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. VSH's P/CF compares to its industry's average P/CF of 19.10. Over the past 52 weeks, VSH's P/CF has been as high as 23.27 and as low as 11, with a median of 17.21.
These are just a handful of the figures considered in Vishay Intertechnology'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 VSH is an impressive value stock right now.