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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Fly Leasing . FLY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 3.88, while its industry has an average P/E of 11.11. FLY's Forward P/E has been as high as 6.62 and as low as 3.83, with a median of 5.72, all within the past year.
FLY is also sporting a PEG ratio of 0.39. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FLY's industry has an average PEG of 1.09 right now. Over the past 52 weeks, FLY's PEG has been as high as 0.66 and as low as 0.38, with a median of 0.57.
Investors should also recognize that FLY has a P/B ratio of 0.46. The P/B ratio pits a stock's market value against 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 1.29. Over the past 12 months, FLY's P/B has been as high as 0.77 and as low as 0.44, with a median of 0.67.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FLY has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.25.
Finally, our model also underscores that FLY has a P/CF ratio of 1.52. 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 4.15. FLY's P/CF has been as high as 2.61 and as low as 1.46, with a median of 2.18, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fly Leasing is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FLY feels like a great value stock at the moment.
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Is Fly Leasing (FLY) a Great Value Stock Right Now?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Fly Leasing . FLY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 3.88, while its industry has an average P/E of 11.11. FLY's Forward P/E has been as high as 6.62 and as low as 3.83, with a median of 5.72, all within the past year.
FLY is also sporting a PEG ratio of 0.39. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FLY's industry has an average PEG of 1.09 right now. Over the past 52 weeks, FLY's PEG has been as high as 0.66 and as low as 0.38, with a median of 0.57.
Investors should also recognize that FLY has a P/B ratio of 0.46. The P/B ratio pits a stock's market value against 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 1.29. Over the past 12 months, FLY's P/B has been as high as 0.77 and as low as 0.44, with a median of 0.67.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FLY has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.25.
Finally, our model also underscores that FLY has a P/CF ratio of 1.52. 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 4.15. FLY's P/CF has been as high as 2.61 and as low as 1.46, with a median of 2.18, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fly Leasing is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FLY feels like a great value stock at the moment.