While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is Forrester Research (FORR). FORR is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.76, while its industry has an average P/E of 18.03. Over the past 52 weeks, FORR's Forward P/E has been as high as 12.15 and as low as 5.95, with a median of 9.22.
We should also highlight that FORR has a P/B ratio of 1.4. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. FORR's current P/B looks attractive when compared to its industry's average P/B of 2.98. Within the past 52 weeks, FORR's P/B has been as high as 1.62 and as low as 0.77, with a median of 1.31.
Finally, investors will want to recognize that FORR has a P/CF ratio of 8.65. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. FORR's current P/CF looks attractive when compared to its industry's average P/CF of 13.89. Within the past 12 months, FORR's P/CF has been as high as 13.94 and as low as 6.92, with a median of 10.35.
These are only a few of the key metrics included in Forrester Research'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, FORR looks like an impressive value stock at the moment.
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Forrester Research, Inc. (FORR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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