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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is CorMedix (CRMD). CRMD is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A.
Investors should also recognize that CRMD has a P/B ratio of 3.44. The P/B is a method of comparing a stock's market value to 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 3.71. Within the past 52 weeks, CRMD's P/B has been as high as 14.04 and as low as 3.10, with a median of 7.44.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CRMD has a P/S ratio of 2.76. This compares to its industry's average P/S of 6.94.
These are just a handful of the figures considered in CorMedix'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 CRMD is an impressive value stock right now.
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CorMedix Inc (CRMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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