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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Carriage Services (CSV - Free Report) . CSV is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.27 right now. For comparison, its industry sports an average P/E of 16.98. CSV's Forward P/E has been as high as 18.96 and as low as 12.05, with a median of 13.96, all within the past year.
CSV is also sporting a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CSV's industry currently sports an average PEG of 1.47. Over the last 12 months, CSV's PEG has been as high as 1.26 and as low as 0.80, with a median of 0.93.
Another notable valuation metric for CSV is its P/B ratio of 2. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CSV's current P/B looks attractive when compared to its industry's average P/B of 3.70. CSV's P/B has been as high as 2.24 and as low as 1.35, with a median of 1.64, over the past year.
These are just a handful of the figures considered in Carriage Services's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CSV is an impressive value stock right now.