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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is CYBG PLC ORD UK (CBBYF - Free Report) . CBBYF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.92, which compares to its industry's average of 9.15. Over the last 12 months, CBBYF's Forward P/E has been as high as 10.59 and as low as 6.53, with a median of 7.01.
CBBYF is also sporting a PEG ratio of 0.79. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CBBYF's industry currently sports an average PEG of 1.14. Over the last 12 months, CBBYF's PEG has been as high as 1.06 and as low as 0.69, with a median of 0.70.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CYBG PLC ORD UK is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CBBYF feels like a great value stock at the moment.