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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is Synchronoss Technologies (SNCR). SNCR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 13.12 right now. For comparison, its industry sports an average P/E of 35.82. Over the past 52 weeks, SNCR's Forward P/E has been as high as 27.71 and as low as -16, with a median of 8.48.
Another valuation metric that we should highlight is SNCR's P/B ratio of 2.94. 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 3.64. SNCR's P/B has been as high as 5.22 and as low as 2.08, with a median of 3.44, over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Synchronoss Technologies is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SNCR feels like a great value stock at the moment.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
