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.
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.
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 company value investors might notice is Artisan Partners Asset Management (APAM - Free Report) . APAM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.90, while its industry has an average P/E of 10.61. Over the past 52 weeks, APAM's Forward P/E has been as high as 11.57 and as low as 7.22, with a median of 9.86.
Finally, our model also underscores that APAM has a P/CF ratio of 11.53. 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 12.50. APAM's P/CF has been as high as 22.90 and as low as 7.18, with a median of 12.39, all within the past year.
These are only a few of the key metrics included in Artisan Partners Asset Management'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, APAM looks like an impressive value stock at the moment.