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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Brady (BRC - Free Report) is a stock many investors are watching right now. BRC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.01 right now. For comparison, its industry sports an average P/E of 20.59. Over the past 52 weeks, BRC's Forward P/E has been as high as 22.27 and as low as 13.68, with a median of 19.85.
We also note that BRC holds a PEG ratio of 2.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BRC's PEG compares to its industry's average PEG of 2.48. BRC's PEG has been as high as 2.97 and as low as 1.82, with a median of 2.65, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brady is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BRC feels like a great value stock at the moment.