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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is JAKKS Pacific (JAKK). JAKK is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 4.85, which compares to its industry's average of 13.43. JAKK's Forward P/E has been as high as 8.33 and as low as 3.75, with a median of 6.35, all within the past year.
Finally, we should also recognize that JAKK has a P/CF ratio of 4.17. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. JAKK's P/CF compares to its industry's average P/CF of 12.35. Over the past 52 weeks, JAKK's P/CF has been as high as 8.68 and as low as 3.53, with a median of 6.76.
These are only a few of the key metrics included in JAKKS Pacific'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, JAKK looks like an impressive value stock at the moment.
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JAKKS Pacific, Inc. (JAKK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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