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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Spirit (SAVE) is a stock many investors are watching right now. SAVE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also note that SAVE holds a PEG ratio of 0.30. 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. SAVE's PEG compares to its industry's average PEG of 0.50. Over the past 52 weeks, SAVE's PEG has been as high as 4 and as low as 0.30, with a median of 0.50.
Another notable valuation metric for SAVE is its P/B ratio of 2.35. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.65. Over the past year, SAVE's P/B has been as high as 2.40 and as low as 1.39, with a median of 1.72.
These are only a few of the key metrics included in Spirit'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, SAVE looks like an impressive value stock at the moment.