While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Booz Allen Hamilton (BAH - Free Report) . BAH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 17.61, while its industry has an average P/E of 17.95. Over the past 52 weeks, BAH's Forward P/E has been as high as 20.35 and as low as 15.39, with a median of 18.10.
We also note that BAH holds a PEG ratio of 1.22. 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. BAH's PEG compares to its industry's average PEG of 1.40. Over the last 12 months, BAH's PEG has been as high as 2.29 and as low as 1.22, with a median of 1.63.
Finally, investors should note that BAH has a P/CF ratio of 16.53. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.60. BAH's P/CF has been as high as 18.49 and as low as 14.67, with a median of 16.41, all within the past year.
These are just a handful of the figures considered in Booz Allen Hamilton'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 BAH is an impressive value stock right now.