The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
One company to watch right now is Nexa Resources (NEXA). NEXA is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 16.53, while its industry has an average P/E of 16.59. NEXA's Forward P/E has been as high as 21.50 and as low as -113.19, with a median of 11.97, all within the past year.
Investors should also note that NEXA holds a PEG ratio of 0.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NEXA's PEG compares to its industry's average PEG of 1.71. Over the last 12 months, NEXA's PEG has been as high as 0.76 and as low as 0.11, with a median of 0.39.
Another notable valuation metric for NEXA is its P/B ratio of 0.59. 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 attractive against its industry's average P/B of 1.68. NEXA's P/B has been as high as 1.10 and as low as 0.55, with a median of 0.70, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Nexa Resources is likely undervalued currently. And when considering the strength of its earnings outlook, NEXA sticks out as one of the market's strongest value stocks.
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Nexa Resources S.A. (NEXA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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