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 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.
Signet (SIG) is a stock many investors are watching right now. SIG is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
We also note that SIG holds a PEG ratio of 0.84. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SIG's industry currently sports an average PEG of 2.22. SIG's PEG has been as high as 1.43 and as low as 0.57, with a median of 0.92, all within the past year.
We should also highlight that SIG has a P/B ratio of 1.23. 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. SIG's current P/B looks attractive when compared to its industry's average P/B of 3.27. Within the past 52 weeks, SIG's P/B has been as high as 1.50 and as low as 0.53, with a median of 0.89.
These are only a few of the key metrics included in Signet'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, SIG looks like an impressive value stock at the moment.