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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
YY (YY) is a stock many investors are watching right now. YY 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 6.77. This compares to its industry's average Forward P/E of 13.54. Over the past 52 weeks, YY's Forward P/E has been as high as 20.66 and as low as 6.49, with a median of 12.37.
Finally, investors should note that YY has a P/CF ratio of 9.87. 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 11.75. Over the past year, YY's P/CF has been as high as 21.45 and as low as 9.45, with a median of 15.10.
Value investors will likely look at more than just these metrics, but the above data helps show that YY is likely undervalued currently. And when considering the strength of its earnings outlook, YY sticks out at as one of the market's strongest value stocks.
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