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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Internet Initiative Japan is a stock many investors are watching right now. IIJI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 21.47, which compares to its industry's average of 30.27. Over the past 52 weeks, IIJI's Forward P/E has been as high as 27.19 and as low as 19.13, with a median of 22.56.
Investors should also note that IIJI holds a PEG ratio of 1.59. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. IIJI's PEG compares to its industry's average PEG of 1.68. IIJI's PEG has been as high as 1.96 and as low as 0.97, with a median of 1.60, all within the past year.
Investors should also recognize that IIJI has a P/B ratio of 1.50. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.36. Over the past year, IIJI's P/B has been as high as 1.68 and as low as 1.23, with a median of 1.40.
Finally, investors should note that IIJI has a P/CF ratio of 5.94. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.75. Over the past year, IIJI's P/CF has been as high as 7.12 and as low as 4.86, with a median of 5.83.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Internet Initiative Japan is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IIJI feels like a great value stock at the moment.