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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Great Lakes Dredge & Dock (GLDD). GLDD is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.37, which compares to its industry's average of 19.16. Over the past year, GLDD's Forward P/E has been as high as 15.23 and as low as 9.59, with a median of 12.30.
We also note that GLDD holds a PEG ratio of 1.03. 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. GLDD's industry currently sports an average PEG of 1.20. Over the last 12 months, GLDD's PEG has been as high as 1.20 and as low as 0.27, with a median of 0.39.
We should also highlight that GLDD has a P/B ratio of 1.63. 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 4.26. Over the past year, GLDD's P/B has been as high as 2.01 and as low as 1.13, with a median of 1.57.
These are just a handful of the figures considered in Great Lakes Dredge & Dock'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 GLDD is an impressive value stock right now.
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Great Lakes Dredge & Dock Corporation (GLDD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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