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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Shoals Technologies Group (SHLS). SHLS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 13.45, which compares to its industry's average of 15.57. SHLS's Forward P/E has been as high as 17.31 and as low as 7.04, with a median of 11.10, all within the past year.
SHLS is also sporting a PEG ratio of 0.56. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SHLS's industry currently sports an average PEG of 0.70. Within the past year, SHLS's PEG has been as high as 0.72 and as low as 0.29, with a median of 0.47.
Investors should also recognize that SHLS has a P/B ratio of 1.67. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.89. SHLS's P/B has been as high as 2.08 and as low as 0.84, with a median of 1.52, over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Shoals Technologies Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SHLS feels like a great 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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