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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Perdoceo Education (PRDO). PRDO is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.08, which compares to its industry's average of 15.69. Over the past year, PRDO's Forward P/E has been as high as 13.31 and as low as 8.92, with a median of 11.42.
We should also highlight that PRDO has a P/B ratio of 2.3. 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 solid versus its industry's average P/B of 3.70. PRDO's P/B has been as high as 2.35 and as low as 1.45, with a median of 1.90, over the past year.
These are just a handful of the figures considered in Perdoceo Education'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 PRDO is an impressive value stock right now.
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Perdoceo Education Corporation (PRDO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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