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 Perdoceo Education (PRDO). PRDO 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 10.47, while its industry has an average P/E of 14.02. PRDO's Forward P/E has been as high as 12.35 and as low as 7.75, with a median of 10.25, all within the past year.
Investors will also notice that PRDO has a PEG ratio of 0.70. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PRDO's industry has an average PEG of 0.71 right now. Over the last 12 months, PRDO's PEG has been as high as 0.82 and as low as 0.52, with a median of 0.68.
Another notable valuation metric for PRDO is its P/B ratio of 1.77. The P/B is a method of comparing a stock's market value to 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 3.09. Over the past 12 months, PRDO's P/B has been as high as 2 and as low as 1.28, with a median of 1.73.
Finally, investors will want to recognize that PRDO has a P/CF ratio of 10.72. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PRDO's P/CF compares to its industry's average P/CF of 41.77. Within the past 12 months, PRDO's P/CF has been as high as 12.95 and as low as 6.72, with a median of 10.21.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Perdoceo Education is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PRDO feels like a great value stock at the moment.
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Perdoceo Education Corporation (PRDO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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