Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 company value investors might notice is AllianceBernstein (AB). AB is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.89, while its industry has an average P/E of 15.48. Over the past 52 weeks, AB's Forward P/E has been as high as 12.79 and as low as 9.17, with a median of 10.71.
Investors should also recognize that AB has a P/B ratio of 2.18. The P/B ratio is used to compare a stock's market value with 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 2.78. Within the past 52 weeks, AB's P/B has been as high as 2.39 and as low as 1.83, with a median of 2.09.
These are only a few of the key metrics included in AllianceBernstein's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AB looks like an impressive value stock at the moment.
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AllianceBernstein Holding L.P. (AB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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