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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Acerinox (ANIOY) . ANIOY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.76, while its industry has an average P/E of 10.63. Over the past year, ANIOY's Forward P/E has been as high as 10.71 and as low as 6.73, with a median of 8.48.
Investors should also recognize that ANIOY has a P/B ratio of 1. 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 attractive against its industry's average P/B of 1.62. ANIOY's P/B has been as high as 1.14 and as low as 0.82, with a median of 0.92, over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Acerinox is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ANIOY feels like a great value stock at the moment.
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Acerinox (ANIOY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research