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.
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.
SkyWest (SKYW - Free Report) is a stock many investors are watching right now. SKYW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We should also highlight that SKYW has a P/B ratio of 1.44. 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. This stock's P/B looks attractive against its industry's average P/B of 2.35. Over the past 12 months, SKYW's P/B has been as high as 1.66 and as low as 1.15, with a median of 1.46.
Finally, we should also recognize that SKYW has a P/CF ratio of 4.51. 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 5.50. SKYW's P/CF has been as high as 4.96 and as low as 2.85, with a median of 4.45, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that SkyWest is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SKYW feels like a great value stock at the moment.