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.
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 stock to keep an eye on is ThyssenKrupp (TKAMY). TKAMY is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.
Another notable valuation metric for TKAMY is its P/B ratio of 0.76. 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. TKAMY's current P/B looks attractive when compared to its industry's average P/B of 1.86. Over the past year, TKAMY's P/B has been as high as 0.77 and as low as 0.17, with a median of 0.53.
Finally, investors should note that TKAMY has a P/CF ratio of 10.76. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. TKAMY's current P/CF looks attractive when compared to its industry's average P/CF of 19.20. TKAMY's P/CF has been as high as 12.05 and as low as 4.06, with a median of 6.99, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that ThyssenKrupp is likely undervalued currently. And when considering the strength of its earnings outlook, TKAMY sticks out as one of the market's strongest value stocks.
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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.
