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.
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.
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 Molina (MOH - Free Report) . MOH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 11.91, while its industry has an average P/E of 14.51. Over the last 12 months, MOH's Forward P/E has been as high as 26.16 and as low as 11.52, with a median of 16.73.
Investors will also notice that MOH has a PEG ratio of 0.95. 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. MOH's industry has an average PEG of 1.09 right now. Within the past year, MOH's PEG has been as high as 1.71 and as low as 0.92, with a median of 1.30.
Finally, we should also recognize that MOH has a P/CF ratio of 9.36. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.31. Within the past 12 months, MOH's P/CF has been as high as 67.91 and as low as -23.30, with a median of 11.70.
Value investors will likely look at more than just these metrics, but the above data helps show that Molina is likely undervalued currently. And when considering the strength of its earnings outlook, MOH sticks out at as one of the market's strongest value stocks.