The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 Halfords Group Plc (HLFDY - Free Report) . HLFDY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.13, while its industry has an average P/E of 10.21. HLFDY's Forward P/E has been as high as 13.31 and as low as 8.84, with a median of 10.71, all within the past year.
Another notable valuation metric for HLFDY is its P/B ratio of 1.18. 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 2.18. Over the past 12 months, HLFDY's P/B has been as high as 1.97 and as low as 1.16, with a median of 1.54.
Value investors will likely look at more than just these metrics, but the above data helps show that Halfords Group Plc is likely undervalued currently. And when considering the strength of its earnings outlook, HLFDY sticks out at as one of the market's strongest value stocks.