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.
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 company value investors might notice is PLDT (PHI - Free Report) . PHI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.14, while its industry has an average P/E of 12.32. PHI's Forward P/E has been as high as 12.21 and as low as 7.56, with a median of 9.83, all within the past year.
Investors should also recognize that PHI has a P/B ratio of 1.88. 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. PHI's current P/B looks attractive when compared to its industry's average P/B of 2.23. PHI's P/B has been as high as 2.55 and as low as 1.75, with a median of 2.11, over the past year.
Finally, investors should note that PHI has a P/CF ratio of 3.13. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.77. Within the past 12 months, PHI's P/CF has been as high as 4.37 and as low as 2.91, with a median of 3.70.
These are only a few of the key metrics included in PLDT'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, PHI looks like an impressive value stock at the moment.