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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Aluminum (ACH). ACH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 18.19, which compares to its industry's average of 30.66. Over the last 12 months, ACH's Forward P/E has been as high as 60.81 and as low as 18.10, with a median of 35.25.
Investors should also recognize that ACH has a P/B ratio of 0.80. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.51. Within the past 52 weeks, ACH's P/B has been as high as 0.90 and as low as 0.31, with a median of 0.45.
These are only a few of the key metrics included in Aluminum'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, ACH looks like an impressive value stock at the moment.
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Aluminum Corporation of China Limited (ACH) : Free Stock Analysis Report
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