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.
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 Shoals Technologies Group (SHLS). SHLS is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.23, which compares to its industry's average of 15.59. Over the last 12 months, SHLS's Forward P/E has been as high as 17.31 and as low as 7.04, with a median of 10.85.
Investors will also notice that SHLS has a PEG ratio of 0.59. 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. SHLS's industry has an average PEG of 0.70 right now. Over the past 52 weeks, SHLS's PEG has been as high as 0.72 and as low as 0.29, with a median of 0.46.
We should also highlight that SHLS has a P/B ratio of 1.73. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.83. SHLS's P/B has been as high as 2.18 and as low as 0.84, with a median of 1.52, over the past year.
These are only a few of the key metrics included in Shoals Technologies Group'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, SHLS looks like an impressive value stock at the moment.
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Shoals Technologies Group, Inc. (SHLS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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