While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 stock to keep an eye on is Sun Country Airlines (SNCY). SNCY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.15, while its industry has an average P/E of 9.61. SNCY's Forward P/E has been as high as 14.79 and as low as 4.54, with a median of 7.24, all within the past year.
Investors will also notice that SNCY has a PEG ratio of 0.19. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SNCY's PEG compares to its industry's average PEG of 0.50. Over the past 52 weeks, SNCY's PEG has been as high as 0.66 and as low as 0.11, with a median of 0.20.
Investors should also recognize that SNCY has a P/B ratio of 1.1. Investors use the P/B ratio to look at a stock's market value versus 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 3.25. Over the past year, SNCY's P/B has been as high as 1.69 and as low as 0.72, with a median of 1.13.
Finally, investors will want to recognize that SNCY has a P/CF ratio of 4.38. 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. SNCY's P/CF compares to its industry's average P/CF of 6.76. Within the past 12 months, SNCY's P/CF has been as high as 6.71 and as low as 3.00, with a median of 4.53.
These are only a few of the key metrics included in Sun Country Airlines's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SNCY looks like an impressive value stock at the moment.
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Sun Country Airlines Holdings, Inc. (SNCY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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