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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Spirit (SAVE - Free Report) . SAVE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.25, which compares to its industry's average of 9.80. Over the past year, SAVE's Forward P/E has been as high as 9.17 and as low as 1.59, with a median of 7.84.
SAVE is also sporting a PEG ratio of 0.50. 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. SAVE's industry has an average PEG of 0.69 right now. Within the past year, SAVE's PEG has been as high as 0.50 and as low as 0.13, with a median of 0.40.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SAVE has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.3.
Finally, investors will want to recognize that SAVE has a P/CF ratio of 1.78. 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. This stock's P/CF looks attractive against its industry's average P/CF of 5.88. Over the past 52 weeks, SAVE's P/CF has been as high as 10.71 and as low as 1.01, with a median of 4.91.
These are just a handful of the figures considered in Spirit's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SAVE is an impressive value stock right now.
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Should Value Investors Buy Spirit (SAVE) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Spirit (SAVE - Free Report) . SAVE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.25, which compares to its industry's average of 9.80. Over the past year, SAVE's Forward P/E has been as high as 9.17 and as low as 1.59, with a median of 7.84.
SAVE is also sporting a PEG ratio of 0.50. 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. SAVE's industry has an average PEG of 0.69 right now. Within the past year, SAVE's PEG has been as high as 0.50 and as low as 0.13, with a median of 0.40.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SAVE has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.3.
Finally, investors will want to recognize that SAVE has a P/CF ratio of 1.78. 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. This stock's P/CF looks attractive against its industry's average P/CF of 5.88. Over the past 52 weeks, SAVE's P/CF has been as high as 10.71 and as low as 1.01, with a median of 4.91.
These are just a handful of the figures considered in Spirit's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SAVE is an impressive value stock right now.