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.
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 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 CRH (CRH). CRH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.30, while its industry has an average P/E of 13.70. CRH's Forward P/E has been as high as 14.56 and as low as 9.20, with a median of 12.11, all within the past year.
Investors should also note that CRH holds a PEG ratio of 0.70. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CRH's industry currently sports an average PEG of 1.09. Over the past 52 weeks, CRH's PEG has been as high as 5.50 and as low as 0.70, with a median of 1.35.
Another notable valuation metric for CRH is its P/B ratio of 1.83. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CRH's current P/B looks attractive when compared to its industry's average P/B of 3.99. Within the past 52 weeks, CRH's P/B has been as high as 2.06 and as low as 1.12, with a median of 1.60.
These are just a handful of the figures considered in CRH'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 CRH is an impressive value stock right now.
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