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.
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.
Grifols (GRFS) is a stock many investors are watching right now. GRFS is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is GRFS's P/B ratio of 0.78. 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 1.66. GRFS's P/B has been as high as 0.86 and as low as 0.49, with a median of 0.65, over the past year.
Finally, investors should note that GRFS has a P/CF ratio of 9.92. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.15. Over the past 52 weeks, GRFS's P/CF has been as high as 13.04 and as low as 9.04, with a median of 10.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Grifols is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GRFS feels like a great value stock at the moment.
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Grifols, S.A. (GRFS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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