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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 company to watch right now is Patria Investments Limited (PAX). PAX is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.5. This compares to its industry's average Forward P/E of 17.75. PAX's Forward P/E has been as high as 11.39 and as low as 7.42, with a median of 8.43, all within the past year.
PAX is also sporting a PEG ratio of 0.71. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PAX's PEG compares to its industry's average PEG of 1.25. Over the past 52 weeks, PAX's PEG has been as high as 1.66 and as low as 0.55, with a median of 1.04.
Investors should also recognize that PAX has a P/B ratio of 1.75. The P/B ratio pits a stock's market value against 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 3.82. Over the past year, PAX's P/B has been as high as 1.79 and as low as 1.20, with a median of 1.44.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PAX has a P/S ratio of 2.18. This compares to its industry's average P/S of 3.14.
Finally, we should also recognize that PAX has a P/CF ratio of 20.79. 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. PAX's P/CF compares to its industry's average P/CF of 38.91. PAX's P/CF has been as high as 21.24 and as low as 14.19, with a median of 17.10, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Patria Investments Limited is likely undervalued currently. And when considering the strength of its earnings outlook, PAX sticks out as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Patria Investments Limited (PAX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
