Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
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.
JAKKS Pacific (JAKK) is a stock many investors are watching right now. JAKK is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 4.73 right now. For comparison, its industry sports an average P/E of 13.18. Over the past year, JAKK's Forward P/E has been as high as 8.33 and as low as 4.12, with a median of 6.35.
Finally, our model also underscores that JAKK has a P/CF ratio of 4.09. 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. JAKK's current P/CF looks attractive when compared to its industry's average P/CF of 12.22. JAKK's P/CF has been as high as 8.68 and as low as 3.53, with a median of 6.76, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that JAKKS Pacific is likely undervalued currently. And when considering the strength of its earnings outlook, JAKK sticks out as one of the market's strongest value stocks.
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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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