While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 Gentex (GNTX). GNTX is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.75. This compares to its industry's average Forward P/E of 20.98. Over the last 12 months, GNTX's Forward P/E has been as high as 15.46 and as low as 10.60, with a median of 13.01.
Investors should also note that GNTX holds a PEG ratio of 1.07. 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. GNTX's PEG compares to its industry's average PEG of 1.35. Within the past year, GNTX's PEG has been as high as 1.08 and as low as 0.75, with a median of 0.85.
Another notable valuation metric for GNTX is its P/B ratio of 2.57. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. GNTX's current P/B looks attractive when compared to its industry's average P/B of 3.50. Over the past 12 months, GNTX's P/B has been as high as 3.00 and as low as 1.89, with a median of 2.41.
Value investors will likely look at more than just these metrics, but the above data helps show that Gentex is likely undervalued currently. And when considering the strength of its earnings outlook, GNTX sticks out as one of the market's strongest value stocks.
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Gentex Corporation (GNTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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