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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is NN (NNBR). NNBR is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
NNBR is also sporting a PEG ratio of 0.60. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NNBR's PEG compares to its industry's average PEG of 0.68. Within the past year, NNBR's PEG has been as high as 17.62 and as low as -7.82, with a median of 1.25.
Investors should also recognize that NNBR has a P/B ratio of 1.9. 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 3.39. NNBR's P/B has been as high as 2.33 and as low as 1.22, with a median of 1.79, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that NN is likely undervalued currently. And when considering the strength of its earnings outlook, NNBR sticks out as one of the market's strongest value stocks.
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NN, Inc. (NNBR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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