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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Piper Sandler Companies (PIPR). PIPR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.91. This compares to its industry's average Forward P/E of 13.52. Over the past 52 weeks, PIPR's Forward P/E has been as high as 15.59 and as low as 9.99, with a median of 12.44.
We should also highlight that PIPR has a P/B ratio of 2.35. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.69. Over the past year, PIPR's P/B has been as high as 2.40 and as low as 0.98, with a median of 1.94.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PIPR has a P/S ratio of 1.62. This compares to its industry's average P/S of 2.1.
Finally, we should also recognize that PIPR has a P/CF ratio of 12.99. 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. PIPR's current P/CF looks attractive when compared to its industry's average P/CF of 18.18. Within the past 12 months, PIPR's P/CF has been as high as 19.61 and as low as 7.21, with a median of 13.03.
These are only a few of the key metrics included in Piper Sandler Companies's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PIPR looks like an impressive value stock at the moment.
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