While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 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 stock to keep an eye on is Screen Holdings Co., Ltd (DINRF - Free Report) . DINRF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.73. This compares to its industry's average Forward P/E of 19.28. Over the past 52 weeks, DINRF's Forward P/E has been as high as 23.07 and as low as 9.72, with a median of 10.76.
DINRF is also sporting a PEG ratio of 0.97. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DINRF's industry has an average PEG of 2.48 right now. Over the past 52 weeks, DINRF's PEG has been as high as 2.31 and as low as 0.97, with a median of 1.08.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Screen Holdings Co., Ltd is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DINRF feels like a great value stock at the moment.