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.
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.
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.
Atkore International Group Inc. (ATKR - Free Report) is a stock many investors are watching right now. ATKR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.10 right now. For comparison, its industry sports an average P/E of 7.45. ATKR's Forward P/E has been as high as 14.50 and as low as 6.01, with a median of 9.12, all within the past year.
Investors should also note that ATKR holds a PEG ratio of 0.71. 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. ATKR's industry currently sports an average PEG of 0.74. Within the past year, ATKR's PEG has been as high as 1.45 and as low as 0.60, with a median of 0.91.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ATKR has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.67.
Finally, investors will want to recognize that ATKR has a P/CF ratio of 5.26. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ATKR's P/CF compares to its industry's average P/CF of 6.86. ATKR's P/CF has been as high as 10.42 and as low as 4.46, with a median of 6.61, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Atkore International Group Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, ATKR sticks out at as one of the market's strongest value stocks.