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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 company to watch right now is Hibbett Sports (HIBB - Free Report) . HIBB is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.81 right now. For comparison, its industry sports an average P/E of 12.85. HIBB's Forward P/E has been as high as 13.17 and as low as 6.79, with a median of 9.92, all within the past year.
HIBB is also sporting a PEG ratio of 0.90. 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. HIBB's industry has an average PEG of 1.35 right now. HIBB's PEG has been as high as 5.45 and as low as 0.62, with a median of 1.30, all within the past year.
Finally, investors should note that HIBB has a P/CF ratio of 6.87. 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. HIBB's current P/CF looks attractive when compared to its industry's average P/CF of 17.42. Over the past year, HIBB's P/CF has been as high as 7.57 and as low as 4.40, with a median of 5.66.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Hibbett Sports is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HIBB feels like a great value stock at the moment.