Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Expedia Group (EXPE). EXPE is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.98 right now. For comparison, its industry sports an average P/E of 24.09. EXPE's Forward P/E has been as high as 16.03 and as low as 8.81, with a median of 11.64, all within the past year.
Investors should also note that EXPE holds a PEG ratio of 0.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EXPE's PEG compares to its industry's average PEG of 1.32. Within the past year, EXPE's PEG has been as high as 0.87 and as low as 0.37, with a median of 0.61.
Finally, our model also underscores that EXPE has a P/CF ratio of 11.50. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.02. Within the past 12 months, EXPE's P/CF has been as high as 11.80 and as low as 6.72, with a median of 9.13.
These are just a handful of the figures considered in Expedia 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 EXPE is an impressive value stock right now.
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Expedia Group, Inc. (EXPE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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