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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is Aveanna Healthcare (AVAH). AVAH is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 17.55, while its industry has an average P/E of 19.53. Over the past 52 weeks, AVAH's Forward P/E has been as high as 296.02 and as low as -1,528.95, with a median of 46.39.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AVAH has a P/S ratio of 0.8. This compares to its industry's average P/S of 1.45.
Value investors will likely look at more than just these metrics, but the above data helps show that Aveanna Healthcare is likely undervalued currently. And when considering the strength of its earnings outlook, AVAH sticks out as one of the market's strongest value stocks.
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Aveanna Healthcare Holdings Inc. (AVAH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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