Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Fujifilm (FUJIY - Free Report) . FUJIY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.21. This compares to its industry's average Forward P/E of 15.26. Over the past 52 weeks, FUJIY's Forward P/E has been as high as 15.91 and as low as 11.58, with a median of 13.32.
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. FUJIY has a P/S ratio of 0.91. This compares to its industry's average P/S of 1.03.
Value investors will likely look at more than just these metrics, but the above data helps show that Fujifilm is likely undervalued currently. And when considering the strength of its earnings outlook, FUJIY sticks out at as one of the market's strongest value stocks.