While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Lenovo (LNVGY - Free Report) . LNVGY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.42, which compares to its industry's average of 15.75. Over the last 12 months, LNVGY's Forward P/E has been as high as 20.46 and as low as 9.16, with a median of 14.51.
Investors should also note that LNVGY holds a PEG ratio of 1.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LNVGY's PEG compares to its industry's average PEG of 1.79. Within the past year, LNVGY's PEG has been as high as 1.88 and as low as 1.47, with a median of 1.64.
Finally, we should also recognize that LNVGY has a P/CF ratio of 7.42. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.48. Over the past year, LNVGY's P/CF has been as high as 12.11 and as low as 6.06, with a median of 8.38.
These are just a handful of the figures considered in Lenovo'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 LNVGY is an impressive value stock right now.