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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Kion Group (KIGRY). KIGRY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.16 right now. For comparison, its industry sports an average P/E of 27.51. KIGRY's Forward P/E has been as high as 18.65 and as low as 9.39, with a median of 11.61, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KIGRY has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.17.
Value investors will likely look at more than just these metrics, but the above data helps show that Kion Group is likely undervalued currently. And when considering the strength of its earnings outlook, KIGRY sticks out as one of the market's strongest value stocks.
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Kion Group (KIGRY): Free Stock Analysis Report American Public Education, Inc. (APEI): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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