Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
CHOW TAI FOOK (CJEWY - Free Report) is a stock many investors are watching right now. CJEWY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 12.66 right now. For comparison, its industry sports an average P/E of 12.78. CJEWY's Forward P/E has been as high as 23.41 and as low as 12.22, with a median of 18.74, all within the past year.
CJEWY is also sporting a PEG ratio of 0.91. 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. CJEWY's industry currently sports an average PEG of 1.29. Over the last 12 months, CJEWY's PEG has been as high as 1.61 and as low as 0.88, with a median of 1.32.
Another notable valuation metric for CJEWY is its P/B ratio of 2.01. 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 stock's P/B looks solid versus its industry's average P/B of 3.01. Over the past 12 months, CJEWY's P/B has been as high as 3.30 and as low as 1.91, with a median of 2.60.
These are only a few of the key metrics included in CHOW TAI FOOK's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CJEWY looks like an impressive value stock at the moment.