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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Acco Brands (ACCO). ACCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
ACCO is also sporting a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACCO's industry currently sports an average PEG of 1.87. Over the past 52 weeks, ACCO's PEG has been as high as 1.15 and as low as 0.43, with a median of 0.97.
Finally, our model also underscores that ACCO has a P/CF ratio of 3.17. 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. ACCO's current P/CF looks attractive when compared to its industry's average P/CF of 10.94. Within the past 12 months, ACCO's P/CF has been as high as 5.80 and as low as 2.12, with a median of 5.16.
These are just a handful of the figures considered in Acco Brands's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ACCO is an impressive value stock right now.
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