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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Molina Healthcare (MOH). MOH is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.32, while its industry has an average P/E of 11.79. Over the past 52 weeks, MOH's Forward P/E has been as high as 14.07 and as low as 10.15, with a median of 12.25.
Investors should also note that MOH holds a PEG ratio of 0.93. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MOH's PEG compares to its industry's average PEG of 1.10. Over the last 12 months, MOH's PEG has been as high as 1.24 and as low as 0.81, with a median of 1.00.
These are only a few of the key metrics included in Molina Healthcare'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, MOH looks like an impressive value stock at the moment.
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Molina Healthcare, Inc (MOH): Free Stock Analysis Report SiriusPoint Ltd. (SPNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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