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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Cars.com (CARS - Free Report) . CARS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also note that CARS holds a PEG ratio of 2.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CARS's industry currently sports an average PEG of 2.36. CARS's PEG has been as high as 2.47 and as low as 0.74, with a median of 1.86, all within the past year.
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. CARS has a P/S ratio of 0.4. This compares to its industry's average P/S of 1.18.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Cars.com is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CARS feels like a great value stock at the moment.
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Should Value Investors Buy Cars.com (CARS) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Cars.com (CARS - Free Report) . CARS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also note that CARS holds a PEG ratio of 2.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CARS's industry currently sports an average PEG of 2.36. CARS's PEG has been as high as 2.47 and as low as 0.74, with a median of 1.86, all within the past year.
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. CARS has a P/S ratio of 0.4. This compares to its industry's average P/S of 1.18.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Cars.com is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CARS feels like a great value stock at the moment.