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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is John B. Sanfilippo & Son (JBSS). JBSS is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. JBSS has a P/S ratio of 0.72. This compares to its industry's average P/S of 0.91.
These are only a few of the key metrics included in John B. Sanfilippo & Son'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, JBSS looks like an impressive value stock at the moment.
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John B. Sanfilippo & Son, Inc. (JBSS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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