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 company value investors might notice is Mylan . MYL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.74, while its industry has an average P/E of 9.21. Over the last 12 months, MYL's Forward P/E has been as high as 6.47 and as low as 3.83, with a median of 4.45.
Investors should also note that MYL holds a PEG ratio of 1.10. 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. MYL's industry currently sports an average PEG of 1.14. Within the past year, MYL's PEG has been as high as 1.19 and as low as 0.78, with a median of 0.95.
Another valuation metric that we should highlight is MYL's P/B ratio of 0.96. The P/B ratio is used to compare a stock's market value with 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 1.32. MYL's P/B has been as high as 1.36 and as low as 0.73, with a median of 0.87, over the past year.
These are only a few of the key metrics included in Mylan'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, MYL looks like an impressive value stock at the moment.