Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Futu Holdings (FUTU). FUTU is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.93. This compares to its industry's average Forward P/E of 21.70. Over the last 12 months, FUTU's Forward P/E has been as high as 26.04 and as low as 10.30, with a median of 14.21.
Investors will also notice that FUTU has a PEG ratio of 0.48. 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. FUTU's industry has an average PEG of 1.12 right now. Within the past year, FUTU's PEG has been as high as 1.66 and as low as 0.45, with a median of 0.78.
Another notable valuation metric for FUTU is its P/B ratio of 3.04. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. FUTU's current P/B looks attractive when compared to its industry's average P/B of 5.04. Over the past year, FUTU's P/B has been as high as 4.86 and as low as 2.22, with a median of 3.15.
Finally, investors should note that FUTU has a P/CF ratio of 15.77. 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. FUTU's current P/CF looks attractive when compared to its industry's average P/CF of 44.59. FUTU's P/CF has been as high as 31.28 and as low as 14.14, with a median of 19.25, all within the past year.
These are only a few of the key metrics included in Futu Holdings'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, FUTU looks like an impressive value stock at the moment.
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Futu Holdings Limited Sponsored ADR (FUTU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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