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.
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 value investors might notice is Unit (UNT - Free Report) . UNT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for UNT is its P/B ratio of 0.79. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.23. Over the past 12 months, UNT's P/B has been as high as 1.04 and as low as 0.64, with a median of 0.87.
Finally, investors will want to recognize that UNT has a P/CF ratio of 3.77. 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. UNT's P/CF compares to its industry's average P/CF of 14.44. Over the past year, UNT's P/CF has been as high as 5.07 and as low as 2.59, with a median of 3.90.
Value investors will likely look at more than just these metrics, but the above data helps show that Unit is likely undervalued currently. And when considering the strength of its earnings outlook, UNT sticks out at as one of the market's strongest value stocks.