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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Balfour Beatty PLC (BAFYY - Free Report) . BAFYY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.70 right now. For comparison, its industry sports an average P/E of 14.68. BAFYY's Forward P/E has been as high as 12.70 and as low as 7.68, with a median of 9.31, all within the past year.
Another notable valuation metric for BAFYY is its P/B ratio of 1.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.80. Within the past 52 weeks, BAFYY's P/B has been as high as 1.65 and as low as 0.95, with a median of 1.27.
Value investors will likely look at more than just these metrics, but the above data helps show that Balfour Beatty PLC is likely undervalued currently. And when considering the strength of its earnings outlook, BAFYY sticks out at as one of the market's strongest value stocks.