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 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.
MYR Group (MYRG - Free Report) is a stock many investors are watching right now. MYRG 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 8.33, which compares to its industry's average of 15.61. Over the past year, MYRG's Forward P/E has been as high as 15.90 and as low as 7.46, with a median of 12.87.
We should also highlight that MYRG has a P/B ratio of 1.07. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. MYRG's current P/B looks attractive when compared to its industry's average P/B of 1.61. Over the past 12 months, MYRG's P/B has been as high as 1.87 and as low as 0.93, with a median of 1.59.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MYRG has a P/S ratio of 0.15. This compares to its industry's average P/S of 0.35.
Finally, we should also recognize that MYRG has a P/CF ratio of 4.77. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. MYRG's P/CF compares to its industry's average P/CF of 7.13. MYRG's P/CF has been as high as 8.55 and as low as 4.13, with a median of 7.09, all within the past year.
These are only a few of the key metrics included in MYR Group'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, MYRG looks like an impressive value stock at the moment.