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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Plains Group (PAGP). PAGP is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 11.11. This compares to its industry's average Forward P/E of 18.04. Over the last 12 months, PAGP's Forward P/E has been as high as 18.69 and as low as 9.71, with a median of 12.46.
These are just a handful of the figures considered in Plains Group'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 PAGP is an impressive value stock right now.
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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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