In This Article:
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Controladora Vuela Compania de Aviacion, B. de C.V. (VLRS) is a stock many investors are watching right now. VLRS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.04, which compares to its industry's average of 16.25. Over the last 12 months, VLRS's Forward P/E has been as high as 89.09 and as low as -21.98, with a median of 10.18.
We should also highlight that VLRS has a P/B ratio of 3.43. 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 company's current P/B looks solid when compared to its industry's average P/B of 4.72. Over the past 12 months, VLRS's P/B has been as high as 6.43 and as low as 2.19, with a median of 3.20.
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. VLRS has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.55.
These are just a handful of the figures considered in Controladora Vuela Compania de Aviacion, B. de C.V.'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 VLRS is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report