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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Tecnoglass (TGLS). TGLS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.90, while its industry has an average P/E of 21.57. Over the past 52 weeks, TGLS's Forward P/E has been as high as 11.15 and as low as 2.86, with a median of 8.85.
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. TGLS has a P/S ratio of 0.66. This compares to its industry's average P/S of 0.72.
Finally, investors will want to recognize that TGLS has a P/CF ratio of 8.11. 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. TGLS's P/CF compares to its industry's average P/CF of 15.41. Within the past 12 months, TGLS's P/CF has been as high as 12.73 and as low as 2.23, with a median of 8.49.
These are only a few of the key metrics included in Tecnoglass's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TGLS looks like an impressive value stock at the moment.
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Tecnoglass Inc. (TGLS) : Free Stock Analysis Report
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