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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Bluerock (BRG - Free Report) is a stock many investors are watching right now. BRG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.88, which compares to its industry's average of 21.02. Over the past year, BRG's Forward P/E has been as high as 15.39 and as low as 4.44, with a median of 13.26.
We also note that BRG holds a PEG ratio of 1.50. 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. BRG's PEG compares to its industry's average PEG of 3.26. BRG's PEG has been as high as 1.52 and as low as 1.36, with a median of 1.46, all within the past year.
Investors should also recognize that BRG has a P/B ratio of 2.22. 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 stock's P/B looks attractive against its industry's average P/B of 2.89. Over the past year, BRG's P/B has been as high as 3.19 and as low as 1.05, with a median of 2.45.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bluerock is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BRG feels like a great value stock at the moment.