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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Greenland Technologies (GTEC). GTEC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 4.51. This compares to its industry's average Forward P/E of 9.17. Over the last 12 months, GTEC's Forward P/E has been as high as 7.29 and as low as 2.77, with a median of 4.62.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GTEC has a P/S ratio of 0.39. This compares to its industry's average P/S of 1.15.
These are only a few of the key metrics included in Greenland Technologies'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, GTEC looks like an impressive value stock at the moment.
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Greenland Technologies Holding Corporation (GTEC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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