Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is PolyOne . POL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.88. This compares to its industry's average Forward P/E of 14.87. Over the last 12 months, POL's Forward P/E has been as high as 22.54 and as low as 7.88, with a median of 12.02.
We also note that POL holds a PEG ratio of 0.87. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. POL's industry has an average PEG of 1.76 right now. Over the last 12 months, POL's PEG has been as high as 2.20 and as low as 0.87, with a median of 1.26.
Another notable valuation metric for POL is its P/B ratio of 1.09. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.16. POL's P/B has been as high as 4.83 and as low as 1.09, with a median of 4.07, over the past year.
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. POL has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.44.
Finally, investors should note that POL has a P/CF ratio of 1.71. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. POL's current P/CF looks attractive when compared to its industry's average P/CF of 5.96. Within the past 12 months, POL's P/CF has been as high as 12.76 and as low as 1.71, with a median of 9.91.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PolyOne is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, POL feels like a great value stock at the moment.
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Are Investors Undervaluing PolyOne (POL) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is PolyOne . POL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.88. This compares to its industry's average Forward P/E of 14.87. Over the last 12 months, POL's Forward P/E has been as high as 22.54 and as low as 7.88, with a median of 12.02.
We also note that POL holds a PEG ratio of 0.87. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. POL's industry has an average PEG of 1.76 right now. Over the last 12 months, POL's PEG has been as high as 2.20 and as low as 0.87, with a median of 1.26.
Another notable valuation metric for POL is its P/B ratio of 1.09. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.16. POL's P/B has been as high as 4.83 and as low as 1.09, with a median of 4.07, over the past year.
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. POL has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.44.
Finally, investors should note that POL has a P/CF ratio of 1.71. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. POL's current P/CF looks attractive when compared to its industry's average P/CF of 5.96. Within the past 12 months, POL's P/CF has been as high as 12.76 and as low as 1.71, with a median of 9.91.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PolyOne is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, POL feels like a great value stock at the moment.