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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 OFG Bancorp (OFG). OFG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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. OFG has a P/S ratio of 1.85. This compares to its industry's average P/S of 1.96.
Finally, investors should note that OFG has a P/CF ratio of 9.01. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.87. OFG's P/CF has been as high as 10.12 and as low as 7.20, with a median of 8.82, all within the past year.
These are only a few of the key metrics included in OFG Bancorp'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, OFG looks like an impressive value stock at the moment.
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OFG Bancorp (OFG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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