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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Aisin Seiki Co. Ltd. Unsponsored ADR (ASEKY - Free Report) . ASEKY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 13.22, which compares to its industry's average of 14.51. Over the past 52 weeks, ASEKY's Forward P/E has been as high as 14.15 and as low as 7.72, with a median of 9.06.
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. ASEKY has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.46.
These are only a few of the key metrics included in Aisin Seiki Co. Ltd. Unsponsored ADR'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, ASEKY looks like an impressive value stock at the moment.