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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is AAC Technologies (AACAY - Free Report) . AACAY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.63 right now. For comparison, its industry sports an average P/E of 18.07. AACAY's Forward P/E has been as high as 19.90 and as low as 7.35, with a median of 12.64, all within the past year.
We should also highlight that AACAY has a P/B ratio of 2.20. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. AACAY's current P/B looks attractive when compared to its industry's average P/B of 2.82. Over the past year, AACAY's P/B has been as high as 6.17 and as low as 2.20, with a median of 2.93.
These are only a few of the key metrics included in AAC Technologies'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, AACAY looks like an impressive value stock at the moment.