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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Invesco (IVZ - Free Report) . IVZ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.39. This compares to its industry's average Forward P/E of 11.24. Over the past 52 weeks, IVZ's Forward P/E has been as high as 9.14 and as low as 5.86, with a median of 7.92.
Investors will also notice that IVZ has a PEG ratio of 0.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IVZ's industry currently sports an average PEG of 1.19. Over the last 12 months, IVZ's PEG has been as high as 1.16 and as low as 0.70, with a median of 0.92.
Investors should also recognize that IVZ has a P/B ratio of 0.77. 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 solid versus its industry's average P/B of 1.76. IVZ's P/B has been as high as 1.04 and as low as 0.69, with a median of 0.88, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IVZ has a P/S ratio of 1.52. This compares to its industry's average P/S of 2.47.
Finally, investors should note that IVZ has a P/CF ratio of 9.70. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.05. Over the past 52 weeks, IVZ's P/CF has been as high as 12.06 and as low as 4.94, with a median of 7.92.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Invesco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IVZ feels like a great value stock at the moment.
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Is Invesco (IVZ) a Great Value Stock Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Invesco (IVZ - Free Report) . IVZ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.39. This compares to its industry's average Forward P/E of 11.24. Over the past 52 weeks, IVZ's Forward P/E has been as high as 9.14 and as low as 5.86, with a median of 7.92.
Investors will also notice that IVZ has a PEG ratio of 0.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IVZ's industry currently sports an average PEG of 1.19. Over the last 12 months, IVZ's PEG has been as high as 1.16 and as low as 0.70, with a median of 0.92.
Investors should also recognize that IVZ has a P/B ratio of 0.77. 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 solid versus its industry's average P/B of 1.76. IVZ's P/B has been as high as 1.04 and as low as 0.69, with a median of 0.88, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IVZ has a P/S ratio of 1.52. This compares to its industry's average P/S of 2.47.
Finally, investors should note that IVZ has a P/CF ratio of 9.70. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.05. Over the past 52 weeks, IVZ's P/CF has been as high as 12.06 and as low as 4.94, with a median of 7.92.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Invesco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IVZ feels like a great value stock at the moment.