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 stock to keep an eye on is Orix (IX). IX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.69. This compares to its industry's average Forward P/E of 10.30. Over the last 12 months, IX's Forward P/E has been as high as 9.14 and as low as 6.67, with a median of 7.81.
Investors will also notice that IX has a PEG ratio of 0.95. 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. IX's industry currently sports an average PEG of 1.07. Over the last 12 months, IX's PEG has been as high as 1.11 and as low as 0.85, with a median of 0.95.
Investors should also recognize that IX has a P/B ratio of 0.80. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.83. Within the past 52 weeks, IX's P/B has been as high as 1.03 and as low as 0.79, with a median of 0.88.
These are just a handful of the figures considered in Orix'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 IX is an impressive value stock right now.
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