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.
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 SkyWest (SKYW). SKYW is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is SKYW's P/B ratio of 1.63. 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. SKYW's current P/B looks attractive when compared to its industry's average P/B of 3.35. Over the past 12 months, SKYW's P/B has been as high as 2.02 and as low as 1.30, with a median of 1.69.
Finally, investors should note that SKYW has a P/CF ratio of 5.44. 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. SKYW's P/CF compares to its industry's average P/CF of 7.12. Over the past year, SKYW's P/CF has been as high as 7.64 and as low as 4.42, with a median of 5.89.
These figures are just a handful of the metrics value investors tend to look at, but they help show that SkyWest is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SKYW feels like a great value stock at the moment.
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SkyWest, Inc. (SKYW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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