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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Infrastructure and Energy Alternatives, Inc. (IEA - Free Report) is a stock many investors are watching right now. IEA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 17.80. This compares to its industry's average Forward P/E of 20.32. IEA's Forward P/E has been as high as 1,712.18 and as low as -8,428.11, with a median of 4.25, all within the past year.
Finally, investors should note that IEA has a P/CF ratio of 1.77. 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 6.89. Over the past 52 weeks, IEA's P/CF has been as high as 114.97 and as low as 1.30, with a median of 2.65.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Infrastructure and Energy Alternatives, Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IEA feels like a great value stock at the moment.