The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Mr Cooper (COOP - Free Report) is a stock many investors are watching right now. COOP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.17, which compares to its industry's average of 7.91. COOP's Forward P/E has been as high as 7.30 and as low as 3.68, with a median of 5.25, all within the past year.
We should also highlight that COOP has a P/B ratio of 0.69. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. COOP's current P/B looks attractive when compared to its industry's average P/B of 0.86. COOP's P/B has been as high as 0.72 and as low as 0.10, with a median of 0.49, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. COOP has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.37.
These are only a few of the key metrics included in Mr Cooper's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, COOP looks like an impressive value stock at the moment.