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.
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.
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 stock to keep an eye on is Zumiez (ZUMZ - Free Report) . ZUMZ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.15, which compares to its industry's average of 14.20. ZUMZ's Forward P/E has been as high as 17.53 and as low as 10.10, with a median of 14.26, all within the past year.
Investors will also notice that ZUMZ has a PEG ratio of 1.05. 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. ZUMZ's PEG compares to its industry's average PEG of 1.22. Within the past year, ZUMZ's PEG has been as high as 1.12 and as low as 0.68, with a median of 0.86.
Another notable valuation metric for ZUMZ is its P/B ratio of 1.68. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.90. Over the past 12 months, ZUMZ's P/B has been as high as 2.24 and as low as 1.24, with a median of 1.68.
These are just a handful of the figures considered in Zumiez'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 ZUMZ is an impressive value stock right now.