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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 company to watch right now is Ericsson (ERIC - Free Report) . ERIC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.57. This compares to its industry's average Forward P/E of 22.49. Over the last 12 months, ERIC's Forward P/E has been as high as 22.29 and as low as 11.49, with a median of 16.83.
Investors should also recognize that ERIC has a P/B ratio of 3.67. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.90. ERIC's P/B has been as high as 4 and as low as 2.37, with a median of 3.41, over the past year.
Finally, investors should note that ERIC has a P/CF ratio of 26.57. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 54.44. Within the past 12 months, ERIC's P/CF has been as high as 64.04 and as low as -16,579.61, with a median of 24.56.
These are only a few of the key metrics included in Ericsson's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ERIC looks like an impressive value stock at the moment.