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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Boyd Gaming (BYD). BYD is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.26. This compares to its industry's average Forward P/E of 33.28. Over the past 52 weeks, BYD's Forward P/E has been as high as 12.90 and as low as 9.21, with a median of 11.23.
Investors should also recognize that BYD has a P/B ratio of 4.76. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 12.03. Within the past 52 weeks, BYD's P/B has been as high as 5.01 and as low as 3.29, with a median of 4.16.
These are just a handful of the figures considered in Boyd Gaming'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 BYD is an impressive value stock right now.
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Boyd Gaming Corporation (BYD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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