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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Universal (UVV). UVV is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.67, which compares to its industry's average of 13.33. Over the last 12 months, UVV's Forward P/E has been as high as 12.95 and as low as 12.55, with a median of 12.71.
Finally, investors should note that UVV has a P/CF ratio of 8.56. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.78. Within the past 12 months, UVV's P/CF has been as high as 10.63 and as low as 6.75, with a median of 8.00.
These are only a few of the key metrics included in Universal'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, UVV looks like an impressive value stock at the moment.
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Universal Corporation (UVV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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