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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
SUMCO CORP ADR (SUOPY - Free Report) is a stock many investors are watching right now. SUOPY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 16.07, while its industry has an average P/E of 18.88. Over the last 12 months, SUOPY's Forward P/E has been as high as 21.09 and as low as 7.09, with a median of 13.37.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SUOPY has a P/S ratio of 1.58. This compares to its industry's average P/S of 2.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that SUMCO CORP ADR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SUOPY feels like a great value stock at the moment.