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.
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.
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 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 has a Forward P/E ratio of 4.96. This compares to its industry's average Forward P/E of 10.94. Over the past year, FLY's Forward P/E has been as high as 6.31 and as low as 3.81, with a median of 5.11.
Investors will also notice that FLY has a PEG ratio of 0.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FLY's PEG compares to its industry's average PEG of 1.07. Over the past 52 weeks, FLY's PEG has been as high as 0.63 and as low as 0.38, with a median of 0.56.
We should also highlight that FLY has a P/B ratio of 0.60. 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 1.04. Over the past year, FLY's P/B has been as high as 0.77 and as low as 0.43, with a median of 0.57.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FLY has a P/S ratio of 0.95. This compares to its industry's average P/S of 0.96.
Finally, we should also recognize that FLY has a P/CF ratio of 1.73. 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 stock's P/CF looks attractive against its industry's average P/CF of 5.60. Over the past year, FLY's P/CF has been as high as 2.61 and as low as 1.38, with a median of 1.81.
These are just a handful of the figures considered in Fly Leasing'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 FLY is an impressive value stock right now.
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Is Fly Leasing (FLY) a Great Value Stock Right Now?
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.
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.
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 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 has a Forward P/E ratio of 4.96. This compares to its industry's average Forward P/E of 10.94. Over the past year, FLY's Forward P/E has been as high as 6.31 and as low as 3.81, with a median of 5.11.
Investors will also notice that FLY has a PEG ratio of 0.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FLY's PEG compares to its industry's average PEG of 1.07. Over the past 52 weeks, FLY's PEG has been as high as 0.63 and as low as 0.38, with a median of 0.56.
We should also highlight that FLY has a P/B ratio of 0.60. 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 1.04. Over the past year, FLY's P/B has been as high as 0.77 and as low as 0.43, with a median of 0.57.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FLY has a P/S ratio of 0.95. This compares to its industry's average P/S of 0.96.
Finally, we should also recognize that FLY has a P/CF ratio of 1.73. 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 stock's P/CF looks attractive against its industry's average P/CF of 5.60. Over the past year, FLY's P/CF has been as high as 2.61 and as low as 1.38, with a median of 1.81.
These are just a handful of the figures considered in Fly Leasing'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 FLY is an impressive value stock right now.