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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 AXA Equitable Holdings, Inc. (EQH - Free Report) . EQH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.94. This compares to its industry's average Forward P/E of 10.75. Over the past year, EQH's Forward P/E has been as high as 5.43 and as low as 4.41, with a median of 4.96.
We also note that EQH holds a PEG ratio of 0.55. 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. EQH's industry currently sports an average PEG of 1.20. Over the last 12 months, EQH's PEG has been as high as 0.74 and as low as 0.51, with a median of 0.62.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. EQH has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.63.
These are only a few of the key metrics included in AXA Equitable Holdings, Inc.'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, EQH looks like an impressive value stock at the moment.