Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Wesco Aircraft Holdings (WAIR - Free Report) . WAIR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.49, while its industry has an average P/E of 16.70. Over the last 12 months, WAIR's Forward P/E has been as high as 15.53 and as low as 8.46, with a median of 10.87.
WAIR is also sporting a PEG ratio of 0.87. 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. WAIR's industry currently sports an average PEG of 1.52. Over the past 52 weeks, WAIR's PEG has been as high as 1.29 and as low as 0.70, with a median of 0.91.
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. WAIR has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.02.
These are only a few of the key metrics included in Wesco Aircraft Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, WAIR looks like an impressive value stock at the moment.