Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company value investors might notice is NN (NNBR). NNBR is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
NNBR is also sporting a PEG ratio of 0.60. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NNBR's PEG compares to its industry's average PEG of 0.83. Over the past 52 weeks, NNBR's PEG has been as high as 17.62 and as low as -7.82, with a median of 1.25.
Investors should also recognize that NNBR has a P/B ratio of 1.9. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. NNBR's current P/B looks attractive when compared to its industry's average P/B of 3.44. Over the past 12 months, NNBR's P/B has been as high as 2.33 and as low as 1.22, with a median of 1.79.
These are only a few of the key metrics included in NN'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, NNBR looks like an impressive value stock at the moment.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>NN, Inc. (NNBR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
