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 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 company value investors might notice is Plains Group (PAGP). PAGP is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.83, which compares to its industry's average of 17.56. Over the last 12 months, PAGP's Forward P/E has been as high as 18.69 and as low as 9.83, with a median of 12.67.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Plains Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PAGP feels like a great value stock at the moment.
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Plains Group Holdings, L.P. (PAGP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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