Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Portland General Electric (POR). POR is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 12.86, which compares to its industry's average of 16.10. Over the last 12 months, POR's Forward P/E has been as high as 15.41 and as low as 12.04, with a median of 13.05.
Another valuation metric that we should highlight is POR's P/B ratio of 1.22. 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. This company's current P/B looks solid when compared to its industry's average P/B of 2.73. POR's P/B has been as high as 1.44 and as low as 1.13, with a median of 1.21, over the past year.
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. POR has a P/S ratio of 1.61. This compares to its industry's average P/S of 2.63.
Finally, our model also underscores that POR has a P/CF ratio of 5.69. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. POR's current P/CF looks attractive when compared to its industry's average P/CF of 12.15. Over the past 52 weeks, POR's P/CF has been as high as 6.49 and as low as 5.28, with a median of 5.71.
Value investors will likely look at more than just these metrics, but the above data helps show that Portland General Electric is likely undervalued currently. And when considering the strength of its earnings outlook, POR sticks out as one of the market's strongest value stocks.
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Portland General Electric Company (POR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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