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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Adecoagro (AGRO). AGRO is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.43, which compares to its industry's average of 14.87. AGRO's Forward P/E has been as high as 14.40 and as low as 5.76, with a median of 9.05, all within the past year.
Investors should also recognize that AGRO has a P/B ratio of 0.56. The P/B ratio is used to compare a stock's market value with 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 1.08. Within the past 52 weeks, AGRO's P/B has been as high as 0.86 and as low as 0.56, with a median of 0.71.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AGRO has a P/S ratio of 0.62. This compares to its industry's average P/S of 0.73.
These are only a few of the key metrics included in Adecoagro'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, AGRO looks like an impressive value stock at the moment.
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Adecoagro S.A. (AGRO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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