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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 AXA Equitable Holdings, Inc. (EQH - Free Report) . EQH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.24. This compares to its industry's average Forward P/E of 10.90. Over the past year, EQH's Forward P/E has been as high as 5.39 and as low as 3.99, with a median of 4.92.
Investors should also note that EQH holds 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. EQH's PEG compares to its industry's average PEG of 1.22. Over the past 52 weeks, EQH's PEG has been as high as 0.72 and as low as 0.34, with a median of 0.62.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EQH has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.63.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AXA Equitable Holdings, Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EQH feels like a great value stock at the moment.