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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Unique Fabricating (UFAB). UFAB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.29, while its industry has an average P/E of 14.41. Over the past year, UFAB's Forward P/E has been as high as 11.76 and as low as -4.39, with a median of 6.80.
We should also highlight that UFAB has a P/B ratio of 1.01. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.76. Over the past year, UFAB's P/B has been as high as 1.22 and as low as 0.55, with a median of 0.72.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UFAB has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.43.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Unique Fabricating is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UFAB feels like a great value stock at the moment.
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Unique Fabricating, Inc. (UFAB) : Free Stock Analysis Report
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