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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Adient (ADNT). ADNT is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.93, while its industry has an average P/E of 21.89. Over the past 52 weeks, ADNT's Forward P/E has been as high as 12.68 and as low as 4.91, with a median of 7.51.
Investors will also notice that ADNT has a PEG ratio of 0.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ADNT's industry currently sports an average PEG of 1.37. Over the past 52 weeks, ADNT's PEG has been as high as 0.60 and as low as 0.22, with a median of 0.31.
These are just a handful of the figures considered in Adient's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ADNT is an impressive value stock right now.
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Adient (ADNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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