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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is Huaneng Power (HNP - Free Report) . HNP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.92, while its industry has an average P/E of 13.91. Over the past 52 weeks, HNP's Forward P/E has been as high as 38.40 and as low as 10.05, with a median of 11.51.
Investors will also notice that HNP has a PEG ratio of 0.83. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HNP's industry currently sports an average PEG of 2.17. Over the past 52 weeks, HNP's PEG has been as high as 2.92 and as low as 0.77, with a median of 0.88.
These are just a handful of the figures considered in Huaneng Power'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 HNP is an impressive value stock right now.