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.
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.
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 stock to keep an eye on is Exterran . EXTN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that EXTN has a P/B ratio of 0.35. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 0.94. Over the past 12 months, EXTN's P/B has been as high as 1.21 and as low as 0.35, with a median of 0.81.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EXTN has a P/S ratio of 0.09. This compares to its industry's average P/S of 0.18.
Value investors will likely look at more than just these metrics, but the above data helps show that Exterran is likely undervalued currently. And when considering the strength of its earnings outlook, EXTN sticks out at as one of the market's strongest value stocks.
Image: Bigstock
Should Value Investors Buy Exterran (EXTN) Stock?
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.
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.
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 stock to keep an eye on is Exterran . EXTN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that EXTN has a P/B ratio of 0.35. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 0.94. Over the past 12 months, EXTN's P/B has been as high as 1.21 and as low as 0.35, with a median of 0.81.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EXTN has a P/S ratio of 0.09. This compares to its industry's average P/S of 0.18.
Value investors will likely look at more than just these metrics, but the above data helps show that Exterran is likely undervalued currently. And when considering the strength of its earnings outlook, EXTN sticks out at as one of the market's strongest value stocks.