The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is SkyWest (SKYW). SKYW is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Investors should also recognize that SKYW has a P/B ratio of 1.63. 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. SKYW's current P/B looks attractive when compared to its industry's average P/B of 3.23. Within the past 52 weeks, SKYW's P/B has been as high as 2.02 and as low as 1.30, with a median of 1.69.
Finally, our model also underscores 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 8.03. SKYW's P/CF has been as high as 7.64 and as low as 4.42, with a median of 5.89, all within the past year.
These are only a few of the key metrics included in SkyWest'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, SKYW looks like an impressive value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SkyWest, Inc. (SKYW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
