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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 company value investors might notice is Curo Group (CURO - Free Report) . CURO is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 4.46 right now. For comparison, its industry sports an average P/E of 7.37. Over the past 52 weeks, CURO's Forward P/E has been as high as 8.93 and as low as 3.27, with a median of 4.18.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CURO has a P/S ratio of 0.52. This compares to its industry's average P/S of 1.26.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Curo Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CURO feels like a great value stock at the moment.