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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Huntsman (HUN - Free Report) . HUN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 6.66, while its industry has an average P/E of 11.68. HUN's Forward P/E has been as high as 16.34 and as low as 6.66, with a median of 10.27, all within the past year.
Investors should also note that HUN holds a PEG ratio of 0.78. 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. HUN's industry has an average PEG of 1.05 right now. Over the last 12 months, HUN's PEG has been as high as 2.33 and as low as 0.78, with a median of 1.24.
Investors should also recognize that HUN has a P/B ratio of 1.40. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.55. Over the past 12 months, HUN's P/B has been as high as 3.10 and as low as 1.40, with a median of 2.07.
Finally, we should also recognize that HUN has a P/CF ratio of 4.27. 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. HUN's current P/CF looks attractive when compared to its industry's average P/CF of 12.37. HUN's P/CF has been as high as 9.44 and as low as 4.27, with a median of 7.13, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Huntsman is likely undervalued currently. And when considering the strength of its earnings outlook, HUN sticks out at as one of the market's strongest value stocks.