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 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 stock to keep an eye on is Skyworks Solutions (SWKS). SWKS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.40, while its industry has an average P/E of 11.45. Over the past 52 weeks, SWKS's Forward P/E has been as high as 13.51 and as low as 8.11, with a median of 11.83.
We also note that SWKS holds a PEG ratio of 0.83. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SWKS's industry has an average PEG of 1.01 right now. Over the past 52 weeks, SWKS's PEG has been as high as 1.23 and as low as 0.66, with a median of 0.90.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SWKS has a P/S ratio of 3.14. This compares to its industry's average P/S of 3.2.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Skyworks Solutions is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SWKS feels like a great value stock at the moment.
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Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report
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