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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is ViacomCBS (VIAC). VIAC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. VIAC has a P/S ratio of 0.86. This compares to its industry's average P/S of 0.96.
Finally, investors should note that VIAC has a P/CF ratio of 4.13. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. VIAC's current P/CF looks attractive when compared to its industry's average P/CF of 13.13. Over the past year, VIAC's P/CF has been as high as 8.93 and as low as 3.99, with a median of 5.49.
These are only a few of the key metrics included in ViacomCBS'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, VIAC looks like an impressive value stock at the moment.