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Is Spirit (SAVE) a Great Value Stock Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Spirit (SAVE - Free Report) . SAVE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 4.84, which compares to its industry's average of 9.86. Over the past 52 weeks, SAVE's Forward P/E has been as high as 9.17 and as low as 4.84, with a median of 7.92.

Investors should also note that SAVE holds a PEG ratio of 0.30. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SAVE's industry currently sports an average PEG of 0.70. SAVE's PEG has been as high as 0.50 and as low as 0.25, with a median of 0.40, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SAVE has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.51.

Finally, investors should note that SAVE has a P/CF ratio of 3.28. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.88. Over the past 52 weeks, SAVE's P/CF has been as high as 11.48 and as low as 3.28, with a median of 5.07.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Spirit is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SAVE feels like a great value stock at the moment.


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