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.
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 Penske Automotive Group (PAG). PAG is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
We should also highlight that PAG has a P/B ratio of 2.05. 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 solid versus its industry's average P/B of 2.22. Over the past year, PAG's P/B has been as high as 2.28 and as low as 1.72, with a median of 2.04.
Finally, investors will want to recognize that PAG has a P/CF ratio of 10.33. 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. PAG's P/CF compares to its industry's average P/CF of 10.39. Within the past 12 months, PAG's P/CF has been as high as 11.07 and as low as 8.46, with a median of 10.12.
These are just a handful of the figures considered in Penske Automotive Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PAG is an impressive value stock right now.
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Penske Automotive Group, Inc. (PAG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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