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, 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is SkyWest (SKYW). SKYW is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.79 right now. For comparison, its industry sports an average P/E of 11.43. Over the past 52 weeks, SKYW's Forward P/E has been as high as 14.41 and as low as 8.62, with a median of 10.88.
Investors should also recognize that SKYW has a P/B ratio of 1.72. 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 3.63. Over the past 12 months, SKYW's P/B has been as high as 2.02 and as low as 1.22, with a median of 1.65.
Finally, we should also recognize that SKYW has a P/CF ratio of 5.73. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.64. Over the past year, SKYW's P/CF has been as high as 7.64 and as low as 4.42, with a median of 5.75.
Value investors will likely look at more than just these metrics, but the above data helps show that SkyWest is likely undervalued currently. And when considering the strength of its earnings outlook, SKYW sticks out as one of the market's strongest value stocks.
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SkyWest, Inc. (SKYW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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