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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Sony . SNE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.59, while its industry has an average P/E of 16.45. Over the past 52 weeks, SNE's Forward P/E has been as high as 16.05 and as low as 6.87, with a median of 14.07.
Investors should also recognize that SNE has a P/B ratio of 1.52. 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 stock's P/B looks attractive against its industry's average P/B of 1.65. Within the past 52 weeks, SNE's P/B has been as high as 2.03 and as low as 1.32, with a median of 1.70.
Value investors will likely look at more than just these metrics, but the above data helps show that Sony is likely undervalued currently. And when considering the strength of its earnings outlook, SNE sticks out at as one of the market's strongest value stocks.
Image: Bigstock
Are Investors Undervaluing Sony (SNE) Right Now?
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Sony . SNE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.59, while its industry has an average P/E of 16.45. Over the past 52 weeks, SNE's Forward P/E has been as high as 16.05 and as low as 6.87, with a median of 14.07.
Investors should also recognize that SNE has a P/B ratio of 1.52. 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 stock's P/B looks attractive against its industry's average P/B of 1.65. Within the past 52 weeks, SNE's P/B has been as high as 2.03 and as low as 1.32, with a median of 1.70.
Value investors will likely look at more than just these metrics, but the above data helps show that Sony is likely undervalued currently. And when considering the strength of its earnings outlook, SNE sticks out at as one of the market's strongest value stocks.