While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
StoneX Group (SNEX) is a stock many investors are watching right now. SNEX is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.77, which compares to its industry's average of 24.33. Over the past year, SNEX's Forward P/E has been as high as 16.59 and as low as 10.91, with a median of 13.42.
Another valuation metric that we should highlight is SNEX's P/B ratio of 2.29. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.19. Over the past 12 months, SNEX's P/B has been as high as 2.58 and as low as 1.50, with a median of 2.11.
Finally, our model also underscores that SNEX has a P/CF ratio of 10.78. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.74. Over the past year, SNEX's P/CF has been as high as 12.15 and as low as 6.83, with a median of 9.43.
These figures are just a handful of the metrics value investors tend to look at, but they help show that StoneX Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SNEX feels like a great 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
StoneX Group Inc. (SNEX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
