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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
One company to watch right now is USANA Health Sciences (USNA). USNA is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A.
Investors should also note that USNA holds a PEG ratio of 0.78. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. USNA's PEG compares to its industry's average PEG of 1.76. Over the last 12 months, USNA's PEG has been as high as 1.39 and as low as 0.65, with a median of 0.87.
We should also highlight that USNA has a P/B ratio of 1.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. USNA's current P/B looks attractive when compared to its industry's average P/B of 1.54. USNA's P/B has been as high as 1.49 and as low as 0.83, with a median of 1.12, over the past year.
Finally, our model also underscores that USNA has a P/CF ratio of 8.43. 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. This stock's P/CF looks attractive against its industry's average P/CF of 14.21. USNA's P/CF has been as high as 10.82 and as low as 7.18, with a median of 9.15, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that USANA Health Sciences is likely undervalued currently. And when considering the strength of its earnings outlook, USNA sticks out as one of the market's strongest value stocks.
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USANA Health Sciences, Inc. (USNA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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