- Oops!Something went wrong.Please try again later.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Flex (FLEX). FLEX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.39, while its industry has an average P/E of 19.59. Over the last 12 months, FLEX's Forward P/E has been as high as 14.34 and as low as 8.31, with a median of 11.32.
Investors should also note that FLEX holds a PEG ratio of 0.79. 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. FLEX's industry currently sports an average PEG of 1.56. Over the past 52 weeks, FLEX's PEG has been as high as 1.36 and as low as 0.79, with a median of 0.95.
Another notable valuation metric for FLEX is its P/B ratio of 2.44. 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 6.94. Over the past year, FLEX's P/B has been as high as 2.93 and as low as 1.71, with a median of 2.60.
Finally, our model also underscores that FLEX has a P/CF ratio of 6.74. 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. FLEX's P/CF compares to its industry's average P/CF of 20.14. Within the past 12 months, FLEX's P/CF has been as high as 8.66 and as low as 5.29, with a median of 7.64.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Flex is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FLEX feels like a great value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Flex Ltd. (FLEX) : Free Stock Analysis Report
To read this article on Zacks.com click here.