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.
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 company value investors might notice is HF Sinclair (DINO). DINO is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is DINO's P/B ratio of 1.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. DINO's current P/B looks attractive when compared to its industry's average P/B of 2.03. DINO's P/B has been as high as 1.06 and as low as 0.53, with a median of 0.76, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DINO has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.43.
These are only a few of the key metrics included in HF Sinclair'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, DINO looks like an impressive value stock at the moment.
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HF Sinclair Corporation (DINO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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