Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is MetLife (MET - Free Report) . MET is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 3.86 right now. For comparison, its industry sports an average P/E of 10.28. Over the past 52 weeks, MET's Forward P/E has been as high as 9.33 and as low as 3.86, with a median of 8.16.
We also note that MET holds a PEG ratio of 0.89. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MET's industry currently sports an average PEG of 1.14. Within the past year, MET's PEG has been as high as 1.67 and as low as 0.87, with a median of 0.98.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MET has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.66.
Finally, we should also recognize that MET has a P/CF ratio of 3.94. 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 stock's P/CF looks attractive against its industry's average P/CF of 5.33. MET's P/CF has been as high as 9.83 and as low as 3.94, with a median of 8.30, all within the past year.
These are only a few of the key metrics included in MetLife'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, MET looks like an impressive value stock at the moment.