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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is QIWI PLC (QIWI - Free Report) . QIWI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that QIWI has a P/B ratio of 2.66. 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. This stock's P/B looks attractive against its industry's average P/B of 7.82. Within the past 52 weeks, QIWI's P/B has been as high as 3.43 and as low as 1.89, with a median of 2.62.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. QIWI has a P/S ratio of 1.98. This compares to its industry's average P/S of 5.05.
Finally, investors will want to recognize that QIWI has a P/CF ratio of 11.89. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 25.14. Over the past 52 weeks, QIWI's P/CF has been as high as 16.81 and as low as 10.49, with a median of 12.74.
These are only a few of the key metrics included in QIWI PLC'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, QIWI looks like an impressive value stock at the moment.