Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 value investors might notice is Fly Leasing (FLY - Free Report) . FLY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 4.92, while its industry has an average P/E of 11.40. Over the last 12 months, FLY's Forward P/E has been as high as 5.84 and as low as 3.81, with a median of 4.66.
Investors will also notice that FLY has a PEG ratio of 0.39. 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. FLY's PEG compares to its industry's average PEG of 0.93. Over the last 12 months, FLY's PEG has been as high as 0.56 and as low as 0.38, with a median of 0.45.
Another notable valuation metric for FLY is its P/B ratio of 0.84. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.19. Over the past year, FLY's P/B has been as high as 0.90 and as low as 0.43, with a median of 0.57.
Finally, investors will want to recognize that FLY has a P/CF ratio of 2.05. 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. FLY's P/CF compares to its industry's average P/CF of 7.29. FLY's P/CF has been as high as 2.18 and as low as 1.38, with a median of 1.72, all within the past year.
These are just a handful of the figures considered in Fly Leasing'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 FLY is an impressive value stock right now.