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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Univest Corporation of Pennsylvania (UVSP). UVSP is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for UVSP is its P/B ratio of 0.98. 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. UVSP's current P/B looks attractive when compared to its industry's average P/B of 1.23. Over the past 12 months, UVSP's P/B has been as high as 1.07 and as low as 0.81, with a median of 0.96.
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. UVSP has a P/S ratio of 1.86. This compares to its industry's average P/S of 1.98.
Finally, our model also underscores that UVSP has a P/CF ratio of 10.53. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. UVSP's P/CF compares to its industry's average P/CF of 13.01. Over the past 52 weeks, UVSP's P/CF has been as high as 11.36 and as low as 8.79, with a median of 10.30.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Univest Corporation of Pennsylvania is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UVSP feels like a great value stock at the moment.
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Univest Corporation of Pennsylvania (UVSP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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