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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Jabil (JBL). JBL is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 20.42 right now. For comparison, its industry sports an average P/E of 22.24. Over the past year, JBL's Forward P/E has been as high as 21.01 and as low as 10.72, with a median of 14.83.
JBL is also sporting a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. JBL's industry has an average PEG of 1.44 right now. JBL's PEG has been as high as 2.17 and as low as 0.95, with a median of 1.37, all within the past year.
Finally, investors should note that JBL has a P/CF ratio of 18.07. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.03. Within the past 12 months, JBL's P/CF has been as high as 18.46 and as low as 5.56, with a median of 8.86.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Jabil is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JBL feels like a great value stock at the moment.
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Jabil, Inc. (JBL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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