Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Crocs (CROX). CROX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.08, while its industry has an average P/E of 9.92. CROX's Forward P/E has been as high as 12.14 and as low as 6.63, with a median of 9.48, all within the past year.
We should also highlight that CROX has a P/B ratio of 2.92. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.44. Over the past 12 months, CROX's P/B has been as high as 6.07 and as low as 2.73, with a median of 4.58.
These are only a few of the key metrics included in Crocs'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, CROX looks like an impressive value stock at the moment.
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Crocs, Inc. (CROX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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