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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 SunCoke Energy (SXC). SXC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that SXC has a P/B ratio of 1.07. 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. This stock's P/B looks solid versus its industry's average P/B of 1.99. Over the past 12 months, SXC's P/B has been as high as 1.31 and as low as 0.69, with a median of 1.09.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SXC has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.8.
These figures are just a handful of the metrics value investors tend to look at, but they help show that SunCoke Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SXC feels like a great value stock at the moment.
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SunCoke Energy, Inc. (SXC) : Free Stock Analysis Report
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