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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is China Automotive Systems (CAAS - Free Report) . CAAS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.35, which compares to its industry's average of 12.76. Over the past year, CAAS's Forward P/E has been as high as 11.20 and as low as 2.80, with a median of 7.
Finally, investors will want to recognize that CAAS has a P/CF ratio of 3.41. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.68. Over the past 52 weeks, CAAS's P/CF has been as high as 6.89 and as low as -6.21, with a median of 4.02.
These are just a handful of the figures considered in China Automotive Systems'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 CAAS is an impressive value stock right now.