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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Accel Entertainment (ACEL). ACEL is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.96 right now. For comparison, its industry sports an average P/E of 32.38. Over the past year, ACEL's Forward P/E has been as high as 17.76 and as low as 11.88, with a median of 14.40.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ACEL has a P/S ratio of 0.74. This compares to its industry's average P/S of 1.47.
These are just a handful of the figures considered in Accel Entertainment'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 ACEL is an impressive value stock right now.
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Accel Entertainment, Inc. (ACEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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