Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 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.
One company to watch right now is Silvercorp Metals (SVM). SVM is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.51. This compares to its industry's average Forward P/E of 14.26. Over the past year, SVM's Forward P/E has been as high as 18.77 and as low as 7.49, with a median of 11.70.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SVM has a P/S ratio of 3.39. This compares to its industry's average P/S of 3.42.
Finally, we should also recognize that SVM has a P/CF ratio of 12.92. 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 stock's P/CF looks attractive against its industry's average P/CF of 36.30. Over the past year, SVM's P/CF has been as high as 13.47 and as low as 6.37, with a median of 8.95.
Value investors will likely look at more than just these metrics, but the above data helps show that Silvercorp Metals is likely undervalued currently. And when considering the strength of its earnings outlook, SVM sticks out as one of the market's strongest value stocks.
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Silvercorp Metals Inc. (SVM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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