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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Mistras Group (MG). MG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.37, while its industry has an average P/E of 25.52. MG's Forward P/E has been as high as 13.78 and as low as 8.93, with a median of 11.00, all within the past year.
MG is also sporting a PEG ratio of 0.77. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MG's PEG compares to its industry's average PEG of 1.75. MG's PEG has been as high as 0.86 and as low as 0.56, with a median of 0.68, all within the past year.
These are just a handful of the figures considered in Mistras Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MG is an impressive value stock right now.
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Mistras Group Inc (MG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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