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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is ICF International (ICFI). ICFI is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
We should also highlight that ICFI has a P/B ratio of 1.74. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.21. Within the past 52 weeks, ICFI's P/B has been as high as 3.38 and as low as 1.48, with a median of 2.20.
Finally, investors will want to recognize that ICFI has a P/CF ratio of 10.65. 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. ICFI's P/CF compares to its industry's average P/CF of 16.62. Within the past 12 months, ICFI's P/CF has been as high as 20.45 and as low as 8.92, with a median of 13.32.
These are just a handful of the figures considered in ICF International'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 ICFI is an impressive value stock right now.
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ICF International, Inc. (ICFI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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