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.
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.
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.
New Oriental Education & Technology Group (EDU) is a stock many investors are watching right now. EDU is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.
Investors should also recognize that EDU has a P/B ratio of 2.23. 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 stock's P/B looks solid versus its industry's average P/B of 3.75. Over the past 12 months, EDU's P/B has been as high as 3.23 and as low as 1.76, with a median of 2.15.
Finally, investors should note that EDU has a P/CF ratio of 17.37. 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. EDU's P/CF compares to its industry's average P/CF of 31.14. Within the past 12 months, EDU's P/CF has been as high as 26.93 and as low as 13.44, with a median of 16.54.
These are just a handful of the figures considered in New Oriental Education & Technology Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EDU is an impressive value stock right now.
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New Oriental Education & Technology Group, Inc. (EDU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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