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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
Oceaneering International (OII) is a stock many investors are watching right now. OII is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.81, which compares to its industry's average of 22.71. Over the past year, OII's Forward P/E has been as high as 19.36 and as low as 8.77, with a median of 13.41.
Investors should also recognize that OII has a P/B ratio of 2.88. The P/B ratio pits a stock's market value against 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 2.88. OII's P/B has been as high as 4.39 and as low as 2.06, with a median of 2.91, over the past year.
Finally, investors should note that OII has a P/CF ratio of 8.17. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. OII's P/CF compares to its industry's average P/CF of 11.86. Within the past 12 months, OII's P/CF has been as high as 13.09 and as low as 5.73, with a median of 8.26.
Value investors will likely look at more than just these metrics, but the above data helps show that Oceaneering International is likely undervalued currently. And when considering the strength of its earnings outlook, OII sticks out as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Oceaneering International, Inc. (OII): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
