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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 FRONTLINE PLC (FRO). FRO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.98 right now. For comparison, its industry sports an average P/E of 6.10. Over the past year, FRO's Forward P/E has been as high as 9.78 and as low as 4.23, with a median of 7.58.
Finally, investors will want to recognize that FRO has a P/CF ratio of 3.86. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 3.95. Within the past 12 months, FRO's P/CF has been as high as 7.24 and as low as 3.26, with a median of 5.66.
These are only a few of the key metrics included in FRONTLINE PLC'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, FRO looks like an impressive value stock at the moment.
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Frontline PLC (FRO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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