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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Dun & Bradstreet (DNB). DNB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.34. This compares to its industry's average Forward P/E of 28.81. Over the past year, DNB's Forward P/E has been as high as 12.27 and as low as 8.27, with a median of 10.17.
Investors will also notice that DNB has a PEG ratio of 2.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DNB's industry currently sports an average PEG of 3.08. DNB's PEG has been as high as 3.49 and as low as 1.53, with a median of 2.02, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DNB has a P/S ratio of 2.15. This compares to its industry's average P/S of 4.72.
Finally, investors will want to recognize that DNB has a P/CF ratio of 8.43. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 33.34. Within the past 12 months, DNB's P/CF has been as high as 9.39 and as low as 6.39, with a median of 8.25.
If you're looking for another solid Business - Information Services value stock, take a look at uCloudlink Group (UCL). UCL is a # 2 (Buy) stock with a Value score of A.