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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Perdoceo Education (PRDO). PRDO is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.66, while its industry has an average P/E of 14.63. Over the past 52 weeks, PRDO's Forward P/E has been as high as 13.31 and as low as 8.92, with a median of 11.08.
Another valuation metric that we should highlight is PRDO's P/B ratio of 2.05. Investors use the P/B ratio to look at a stock's market value versus 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 3.34. Within the past 52 weeks, PRDO's P/B has been as high as 2.30 and as low as 1.45, with a median of 1.83.
These are only a few of the key metrics included in Perdoceo Education'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, PRDO looks like an impressive value stock at the moment.
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Perdoceo Education Corporation (PRDO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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