Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Criteo (CRTO) is a stock many investors are watching right now. CRTO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.67 right now. For comparison, its industry sports an average P/E of 21.92. Over the past 52 weeks, CRTO's Forward P/E has been as high as 13.26 and as low as 5.98, with a median of 9.81.
Investors should also recognize that CRTO has a P/B ratio of 1.83. 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 3.64. Within the past 52 weeks, CRTO's P/B has been as high as 2.62 and as low as 1.49, with a median of 2.04.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CRTO has a P/S ratio of 1.03. This compares to its industry's average P/S of 1.69.
Finally, our model also underscores that CRTO has a P/CF ratio of 9.90. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.92. Over the past 52 weeks, CRTO's P/CF has been as high as 16.38 and as low as 8.08, with a median of 12.92.
These are just a handful of the figures considered in Criteo's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CRTO is an impressive value stock right now.
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Criteo S.A. (CRTO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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