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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Constellium (CSTM). CSTM is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.09, while its industry has an average P/E of 10.94. CSTM's Forward P/E has been as high as 14.43 and as low as 5.43, with a median of 8.82, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CSTM has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.26.
Value investors will likely look at more than just these metrics, but the above data helps show that Constellium is likely undervalued currently. And when considering the strength of its earnings outlook, CSTM sticks out as one of the market's strongest value stocks.
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Constellium SE (CSTM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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