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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Bristol-Myers Squibb (BMY - Free Report) . BMY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.36 right now. For comparison, its industry sports an average P/E of 16.43. BMY's Forward P/E has been as high as 14.36 and as low as 9.22, with a median of 10.69, all within the past year.
BMY is also sporting a PEG ratio of 1.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BMY's PEG compares to its industry's average PEG of 2.13. Within the past year, BMY's PEG has been as high as 2.48 and as low as 1.04, with a median of 2.01.
Another valuation metric that we should highlight is BMY's P/B ratio of 5.89. 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. BMY's current P/B looks attractive when compared to its industry's average P/B of 6.84. BMY's P/B has been as high as 6.22 and as low as 4.33, with a median of 5.05, over the past year.
These are just a handful of the figures considered in Bristol-Myers Squibb'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 BMY is an impressive value stock right now.