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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Blackbaud (BLKB) is a stock many investors are watching right now. BLKB is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 14.41. This compares to its industry's average Forward P/E of 22.37. Over the last 12 months, BLKB's Forward P/E has been as high as 19.64 and as low as 13.39, with a median of 15.04.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BLKB has a P/S ratio of 2.08. This compares to its industry's average P/S of 4.01.
These are only a few of the key metrics included in Blackbaud'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, BLKB looks like an impressive value stock at the moment.
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Blackbaud, Inc. (BLKB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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