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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Noble Midstream Partners (NBLX). NBLX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.50. This compares to its industry's average Forward P/E of 18.65. NBLX's Forward P/E has been as high as 13.40 and as low as 1.48, with a median of 5.98, all within the past year.
Investors should also note that NBLX holds a PEG ratio of 0.93. 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. NBLX's industry has an average PEG of 1.59 right now. NBLX's PEG has been as high as 0.93 and as low as 0.32, with a median of 0.45, all within the past year.
Another notable valuation metric for NBLX is its P/B ratio of 0.73. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. NBLX's current P/B looks attractive when compared to its industry's average P/B of 1.89. Within the past 52 weeks, NBLX's P/B has been as high as 2.11 and as low as 0.23, with a median of 0.70.
Finally, investors will want to recognize that NBLX has a P/CF ratio of 3.57. 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. NBLX's current P/CF looks attractive when compared to its industry's average P/CF of 5.44. Within the past 12 months, NBLX's P/CF has been as high as 6.34 and as low as 0.68, with a median of 3.95.
These are just a handful of the figures considered in Noble Midstream Partners'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 NBLX is an impressive value stock right now.
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