Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
One company to watch right now is EXPEDIA GROUP (EXPE). EXPE is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.98 right now. For comparison, its industry sports an average P/E of 21.03. Over the past year, EXPE's Forward P/E has been as high as 16.03 and as low as 8.81, with a median of 11.64.
Investors will also notice that EXPE has a PEG ratio of 0.84. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EXPE's PEG compares to its industry's average PEG of 1.33. EXPE's PEG has been as high as 0.87 and as low as 0.37, with a median of 0.61, all within the past year.
Finally, our model also underscores that EXPE has a P/CF ratio of 11.50. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.63. Over the past year, EXPE's P/CF has been as high as 11.80 and as low as 6.72, with a median of 9.13.
These figures are just a handful of the metrics value investors tend to look at, but they help show that EXPEDIA GROUP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EXPE feels like a great value stock at the moment.
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Today, See These 5 Potential Home Runs >>Expedia Group, Inc. (EXPE) : 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.
