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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 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 company to watch right now is FinVolution (FINV). FINV is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FINV has a P/S ratio of 0.69. This compares to its industry's average P/S of 1.62.
Finally, investors should note that FINV has a P/CF ratio of 1.97. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.40. Over the past 52 weeks, FINV's P/CF has been as high as 3.59 and as low as 1.15, with a median of 1.97.
These figures are just a handful of the metrics value investors tend to look at, but they help show that FinVolution is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FINV feels like a great value stock at the moment.
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