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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Rocky Brands (RCKY). RCKY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.19. This compares to its industry's average Forward P/E of 32.54. Over the past year, RCKY's Forward P/E has been as high as 18.42 and as low as 6.39, with a median of 13.54.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RCKY has a P/S ratio of 0.66. This compares to its industry's average P/S of 0.85.
Finally, investors will want to recognize that RCKY has a P/CF ratio of 8.60. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 24.01. Over the past 52 weeks, RCKY's P/CF has been as high as 11.81 and as low as 4.94, with a median of 8.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Rocky Brands is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RCKY feels like a great value stock at the moment.
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Rocky Brands, Inc. (RCKY) : Free Stock Analysis Report
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