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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is America Movil, S.A.B. de C.V. Unsponsored ADR (AMX). AMX is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.76. This compares to its industry's average Forward P/E of 12.80. Over the past 52 weeks, AMX's Forward P/E has been as high as 19.89 and as low as 8.32, with a median of 9.76.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AMX has a P/S ratio of 1.47. This compares to its industry's average P/S of 1.59.
These are only a few of the key metrics included in America Movil, S.A.B. de C.V. Unsponsored ADR'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, AMX looks like an impressive value stock at the moment.
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America Movil, S.A.B. de C.V. Unsponsored ADR (AMX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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