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Is Fluor (FLR) a Great Value Stock Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Fluor (FLR - Free Report) . FLR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors will also notice that FLR has a PEG ratio of 0.71. 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. FLR's industry currently sports an average PEG of 1.34. Within the past year, FLR's PEG has been as high as 1.23 and as low as 0.23, with a median of 0.74.

Another notable valuation metric for FLR is its P/B ratio of 1.11. The P/B ratio is used to compare a stock's market value with 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 1.71. Over the past year, FLR's P/B has been as high as 2.16 and as low as 0.92, with a median of 1.61.

Value investors will likely look at more than just these metrics, but the above data helps show that Fluor is likely undervalued currently. And when considering the strength of its earnings outlook, FLR sticks out at as one of the market's strongest value stocks.


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