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 EchoStar (SATS). SATS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for SATS is its P/B ratio of 0.31. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SATS's current P/B looks attractive when compared to its industry's average P/B of 0.47. Over the past year, SATS's P/B has been as high as 0.44 and as low as 0.19, with a median of 0.32.
Finally, our model also underscores that SATS has a P/CF ratio of 3.25. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SATS's P/CF compares to its industry's average P/CF of 4.95. Over the past year, SATS's P/CF has been as high as 25.21 and as low as -76.75, with a median of 3.44.
Value investors will likely look at more than just these metrics, but the above data helps show that EchoStar is likely undervalued currently. And when considering the strength of its earnings outlook, SATS sticks out at as one of the market's strongest value stocks.
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EchoStar Corporation (SATS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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