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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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.
Innovex International, Inc. (INVX) is a stock many investors are watching right now. INVX is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 12.61 right now. For comparison, its industry sports an average P/E of 16.81. Over the past year, INVX's Forward P/E has been as high as 21.70 and as low as 11.45, with a median of 17.76.
Investors should also recognize that INVX has a P/B ratio of 1.2. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.40. Within the past 52 weeks, INVX's P/B has been as high as 1.34 and as low as 0.60, with a median of 1.12.
Finally, investors will want to recognize that INVX has a P/CF ratio of 5.88. 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. INVX's P/CF compares to its industry's average P/CF of 10.30. Over the past 52 weeks, INVX's P/CF has been as high as 7.21 and as low as 2.67, with a median of 5.57.
Value investors will likely look at more than just these metrics, but the above data helps show that Innovex International, Inc. is likely undervalued currently. And when considering the strength of its earnings outlook, INVX sticks out as one of the market's strongest value stocks.
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Innovex International, Inc. (INVX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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