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.
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 to watch right now is Nomura (NMR). NMR is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.7, which compares to its industry's average of 14.57. NMR's Forward P/E has been as high as 11.13 and as low as 6.19, with a median of 8.63, all within the past year.
Another notable valuation metric for NMR is its P/B ratio of 0.89. The P/B ratio pits a stock's market value against 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 2.46. Over the past 12 months, NMR's P/B has been as high as 0.90 and as low as 0.62, with a median of 0.77.
Finally, our model also underscores that NMR has a P/CF ratio of 7.63. 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. NMR's P/CF compares to its industry's average P/CF of 16.98. Over the past year, NMR's P/CF has been as high as 9.60 and as low as 5.73, with a median of 7.23.
Value investors will likely look at more than just these metrics, but the above data helps show that Nomura is likely undervalued currently. And when considering the strength of its earnings outlook, NMR sticks out as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nomura Holdings Inc ADR (NMR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
