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 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.
Vodafone Group (VOD) is a stock many investors are watching right now. VOD is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 10.07, while its industry has an average P/E of 10.95. Over the past year, VOD's Forward P/E has been as high as 12.50 and as low as 8.12, with a median of 9.80.
We should also highlight that VOD has a P/B ratio of 0.46. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.14. VOD's P/B has been as high as 0.46 and as low as 0.31, with a median of 0.37, over the past year.
These are just a handful of the figures considered in Vodafone Group'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 VOD is an impressive value stock right now.
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Vodafone Group PLC (VOD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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