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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Angi (ANGI). ANGI is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.4. This compares to its industry's average Forward P/E of 18.23. Over the past year, ANGI's Forward P/E has been as high as 64.53 and as low as 9.92, with a median of 18.22.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ANGI has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.16.
These are only a few of the key metrics included in Angi'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, ANGI looks like an impressive value stock at the moment.
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Angi Inc. (ANGI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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