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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Allstate (ALL - Free Report) . ALL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
ALL is also sporting a PEG ratio of 1.15. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ALL's industry currently sports an average PEG of 3.30. Within the past year, ALL's PEG has been as high as 1.46 and as low as 0.85, with a median of 1.29.
Another notable valuation metric for ALL is its P/B ratio of 1.33. The P/B is a method of comparing a stock's market value to 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 1.42. Over the past 12 months, ALL's P/B has been as high as 1.71 and as low as 1, with a median of 1.52.
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. ALL has a P/S ratio of 0.68. This compares to its industry's average P/S of 0.74.
Finally, investors will want to recognize that ALL has a P/CF ratio of 6.25. 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. ALL's P/CF compares to its industry's average P/CF of 15.10. Over the past year, ALL's P/CF has been as high as 11.93 and as low as 4.27, with a median of 10.97.
These are just a handful of the figures considered in Allstate'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 ALL is an impressive value stock right now.
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Is Allstate (ALL) Stock Undervalued Right Now?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Allstate (ALL - Free Report) . ALL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
ALL is also sporting a PEG ratio of 1.15. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ALL's industry currently sports an average PEG of 3.30. Within the past year, ALL's PEG has been as high as 1.46 and as low as 0.85, with a median of 1.29.
Another notable valuation metric for ALL is its P/B ratio of 1.33. The P/B is a method of comparing a stock's market value to 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 1.42. Over the past 12 months, ALL's P/B has been as high as 1.71 and as low as 1, with a median of 1.52.
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. ALL has a P/S ratio of 0.68. This compares to its industry's average P/S of 0.74.
Finally, investors will want to recognize that ALL has a P/CF ratio of 6.25. 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. ALL's P/CF compares to its industry's average P/CF of 15.10. Over the past year, ALL's P/CF has been as high as 11.93 and as low as 4.27, with a median of 10.97.
These are just a handful of the figures considered in Allstate'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 ALL is an impressive value stock right now.