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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Qifu Technology, Inc. (QFIN). QFIN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We also note that QFIN holds a PEG ratio of 0.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. QFIN's PEG compares to its industry's average PEG of 1.13. Over the past 52 weeks, QFIN's PEG has been as high as 0.87 and as low as 0.27, with a median of 0.41.
Another notable valuation metric for QFIN is its P/B ratio of 1.80. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.08. QFIN's P/B has been as high as 2.28 and as low as 0.93, with a median of 1.57, over the past year.
These are only a few of the key metrics included in Qifu Technology, Inc.'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, QFIN looks like an impressive value stock at the moment.
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Qifu Technology, Inc. (QFIN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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