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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Strategic Education (STRA). STRA is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 13.96, which compares to its industry's average of 15.81. Over the past 52 weeks, STRA's Forward P/E has been as high as 22.11 and as low as 12.92, with a median of 17.07.
Investors should also recognize that STRA has a P/B ratio of 1.27. Investors use the P/B ratio to look at a stock's market value versus 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 3.37. Over the past year, STRA's P/B has been as high as 1.77 and as low as 1.13, with a median of 1.36.
Value investors will likely look at more than just these metrics, but the above data helps show that Strategic Education is likely undervalued currently. And when considering the strength of its earnings outlook, STRA sticks out as one of the market's strongest value stocks.
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Strategic Education Inc. (STRA): Free Stock Analysis Report Garrett Motion Inc. (GTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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