The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company to watch right now is Avis Budget Group (CAR). CAR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.42, while its industry has an average P/E of 12.64. CAR's Forward P/E has been as high as 37.43 and as low as 5.80, with a median of 12.45, all within the past year.
Investors will also notice that CAR has a PEG ratio of 0.33. 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. CAR's PEG compares to its industry's average PEG of 0.70. CAR's PEG has been as high as 1.36 and as low as 0.16, with a median of 0.49, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CAR has a P/S ratio of 0.87. This compares to its industry's average P/S of 1.14.
Investors could also keep in mind IBEX Limited (IBEX), an Business - Services stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
IBEX Limited also has a P/B ratio of 3.41 compared to its industry's price-to-book ratio of 2.25. Over the past year, its P/B ratio has been as high as 5.46, as low as 2.56, with a median of 3.43.
These are only a few of the key metrics included in Avis Budget Group and IBEX Limited strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CAR and IBEX look like an impressive value stock at the moment.
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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
IBEX Limited (IBEX) : Free Stock Analysis Report
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