Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 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 stock to keep an eye on is InfuSystems Holdings (INFU). INFU is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.
We should also highlight that INFU has a P/B ratio of 2.73. 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 5.02. Within the past 52 weeks, INFU's P/B has been as high as 3.65 and as low as 1.79, with a median of 2.47.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. INFU has a P/S ratio of 1.1. This compares to its industry's average P/S of 1.43.
Finally, investors should note that INFU has a P/CF ratio of 9.36. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. INFU's current P/CF looks attractive when compared to its industry's average P/CF of 11.75. Over the past 52 weeks, INFU's P/CF has been as high as 14.94 and as low as 6.13, with a median of 10.35.
Value investors will likely look at more than just these metrics, but the above data helps show that InfuSystems Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, INFU sticks out as one of the market's strongest value stocks.
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InfuSystems Holdings, Inc. (INFU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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