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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is Synnex (SNX). SNX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.51, while its industry has an average P/E of 21.35. Over the past 52 weeks, SNX's Forward P/E has been as high as 9.62 and as low as 6.31, with a median of 7.95.
Investors will also notice that SNX has a PEG ratio of 0.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SNX's PEG compares to its industry's average PEG of 1.87. Over the past 52 weeks, SNX's PEG has been as high as 0.74 and as low as 0.59, with a median of 0.67.
Value investors will likely look at more than just these metrics, but the above data helps show that Synnex is likely undervalued currently. And when considering the strength of its earnings outlook, SNX sticks out at as one of the market's strongest value stocks.
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