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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Blue Bird (BLBD). BLBD is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
We also note that BLBD holds a PEG ratio of 1.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BLBD's PEG compares to its industry's average PEG of 3.40. Over the last 12 months, BLBD's PEG has been as high as 1.58 and as low as 0.17, with a median of 0.83.
These are only a few of the key metrics included in Blue Bird'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, BLBD looks like an impressive value stock at the moment.
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Blue Bird Corporation (BLBD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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