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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Genworth Financial (GNW). GNW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 4.53 right now. For comparison, its industry sports an average P/E of 8.88. GNW's Forward P/E has been as high as 5.32 and as low as 3.01, with a median of 4.26, all within the past year.
Finally, our model also underscores that GNW has a P/CF ratio of 5.70. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. GNW's current P/CF looks attractive when compared to its industry's average P/CF of 18.01. GNW's P/CF has been as high as 6.20 and as low as 1.24, with a median of 2.04, all within the past year.
These are just a handful of the figures considered in Genworth Financial'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 GNW is an impressive value stock right now.