Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 USANA Health Sciences (USNA). USNA is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Investors should also note that USNA holds a PEG ratio of 0.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. USNA's PEG compares to its industry's average PEG of 1.87. USNA's PEG has been as high as 1.39 and as low as 0.65, with a median of 0.91, all within the past year.
Another valuation metric that we should highlight is USNA's P/B ratio of 1.09. 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. USNA's current P/B looks attractive when compared to its industry's average P/B of 1.52. USNA's P/B has been as high as 1.53 and as low as 0.83, with a median of 1.15, over the past year.
Finally, investors will want to recognize that USNA has a P/CF ratio of 8.77. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.78. Within the past 12 months, USNA's P/CF has been as high as 10.82 and as low as 7.18, with a median of 9.27.
These figures are just a handful of the metrics value investors tend to look at, but they help show that USANA Health Sciences is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, USNA feels like a great value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
USANA Health Sciences, Inc. (USNA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
